Parliament at Odds over Proposed Customs Tariffs

The Parliament decided on June 10 to postpone of the government?s proposal to reduce number of customs tariffs from the current 16 to 3. The proposal also envisaged reduction of customs tariff rates to zero percent, 5% and 12% on remaining three tariffs.

Customs tariff rates currently range from minimal 6% to 30%.

The government says the liberalized customs tariffs mean lower prices for the consumers and boosting investments.

But some influential lawmakers ? Nino Burjanadze, the Parliamentary Chairperson and Jemal Inaishvili, the Vice-Speaker and the President of the Georgian Chamber of Trade and Commerce are among them ? fear that the reduction of customs tariffs on imported agricultural products will hit local producers in the agricultural sector. But some lawmakers from the ruling National Movement, including parliamentary majority leader Maia Nadiradze, are supporting the government?s proposal.

Parliamentarians from the opposition Industrialists party – which has an ambition to be a business lobby group in the Parliament ? is also against of the proposal.

The opposition Democratic Front parliamentary faction accused some officials ? in particular influential MPs from the ruling National Movement party Givi Targamadze and Davit Kezerashvili, as well as Interior Minister Vano Merabishvili ? of lobbying foreign importers.

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