The Georgian poultry industry says
that the government's policy is aimed at strangling the fully developed sector
of the economy such as the chicken meat production.
"Despite the high level
of imports, Georgia citizens prefer to
buy local chicken, but despite this, the business sees serious problems
associated with the introduced in 2011, the norm under which tax benefits not
extend the industry and it has to pay VAT.
In addition, in 2017 another
tax for sanitary inspection of products was set - 5 tetri per chicken. This
change has caused a storm of indignation among local producers, since there is
no such precedent in any country in the world. Because of the new norm, some
companies had to increase prices for products, some were forced to stop
According to Director of the
company Chirina Revaz Vashakidze, because of the VAT, producers cannot reduce
the prices for products, despite the consumption of chicken in Georgia is less
than in any European country.
"On average, Europe
consumes 28-32 kg of chicken meat per year, while in Georgia - only 12 kg. This
difference is primarily associated with high prices for products. We could
reduce them, but tax norms do not allow us to do this, "he explains.
The development of local
production was announced by the
government as one of the priorities, however, the poultry farmers are talking
about a paradoxical situation: the
authorities try to stimulate local business through dubious and completely
ineffective state programs, but at the same time hinder the development of a
successful industry that works by itself without requiring assistance from the government.
The tax policy kills
poultry farming, it should be reconsidered, representatives of the poultry industry believe.