BAKU, Azerbaijan, Nov. 3
By Maryana Akhmedova – Trend:
The increase in gas tariffs in Georgia will increase prices in agricultural and service sectors, Mikheil Chelidze, the Head of the Association of Small and Medium Enterprises, said, Trend reports via Georgian media.
Rising gas prices will increase inflationary pressures as output rises and affects inflation, Mikheil Chelidze said.
“Production that consumes gas will become more expensive. It will be the service sector and the production of agricultural products, including greenhouses. Practically Georgia is heated by natural gas in general, therefore, the service sector, in particular, the hotel business, will have to review prices,” he added.
“The economy must be adjusted following the new tariff policy. The increase in taxes is mostly due to general prices increase on a global market. However, constant change of tariffs will cause instability in Georgian business,” Chelidze noted.
Increased taxes will create problems for greenhouses especially, Koba Kobaladze, the Head of the International Association for Agricultural Development, said.
The cost could increase significantly as more than half of the greenhouse budget is spent on heating. The scientist also talks about the need for alternative means of heating.
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