The head of the Distributors Association is a radical opposition activist, and the heads of large distribution companies are also leaders of a radical party - again, they talk about high prices and themselves impose high markups, - Georgian Prime Minister Irakli Kobakhidze stated this on Imedi LIVE.
According to the Prime Minister, the head of the Distributors Association should come to Parliament and prove that this markup is correct and not based on cartel transactions.
"Specific opposition television stations directly, clearly supported the distribution business, as well as the networks, and directly artificially shifted the emphasis to VAT, which directly raises suspicions that there were political, subjective interests. We can also recall that the head of the Distributors Association is one of the activists of the radical opposition, and their direct complicity is also evident in other directions. The heads of one of the large distribution companies are leaders of one of the radical parties. Again, they talk about high prices and themselves impose high markups, which ultimately leads to an increase in prices. All these people will have to give answers. I wish the head of this association would come to parliament and prove that this markup is correct, healthy, not based on cartel deals, and the public should see and evaluate all this. If they cannot prove it, then I wish they should be willing to lower prices. One hundred people cannot oppress 4 million people. If we determine that 100 people are oppressing 4 million people, the state must intervene here too," the Prime Minister said.
According to the Prime Minister, speculations related to VAT are absolutely inappropriate. In particular, he explains that when we talk about a 100% price increase on the one hand and an 18% VAT on the other, it is clear how great the speculation is.
"Speculations related to VAT are absolutely inappropriate. The markup is 86%, without any taxes, from the border to the counter. If we add the markup to the border, it turns out double and more. When we talk about a 100% markup and you talk about an 18% VAT, it shows how big the speculation is. Taxes are what ultimately return to people, because they are included in the budget and then used for social programs, infrastructure, etc. Unlike the markup that goes to businesses. Speculations here are quite inappropriate. We are talking about a double markup and here they are talking about 18%. If the markup were lower, the VAT would also be lower in absolute terms. If you put a lower markup, for example, if their markup were reduced by a third, the VAT would also be lower. Accordingly, it will be reduced proportionally," the Prime Minister said.
