About Civil.ge
Eng | Geo | Rus
Last updated: 12:31 - 25 Oct.'14
 
RSS
Mobile
Twitter
Facebook
Closure of Ergneti Black Market Boosted Customs Revenues
Civil Georgia, Tbilisi / 2 Sep.'04 / 14:45

This market in Ergneti in the conflict zone was
once a major trading center for smuggled goods.
Now it is closed and empty.

According to the press release issued by the Georgian Customs Department on September 1, closing down Ergneti market in the South Ossetian conflict zone, which was once a major trading center for smuggled goods from Russia, helped to increase revenues.

The Kazbegi checkpoint is the only land border linking Georgia with Russia that is controlled by the official Tbilisi. In August 2004 the revenues at Kazbegi customs checkpoint increased five-fold as compared to those in January and reached 4,6 million Lari (approximately USD 2,5 million) against the 900,000 Lari (approximately USD 500,000) in January 2004.

According to the Georgian Finance Ministry, that total customs revenues in August have doubled when compared to August 2003 and reached 65 million Lari (USD 36,1 million). Certainly not all of the growth in revenues is directly attributable to closing of Ergneti market, but the economists estimate that the impact is significant.

The Customs Department also reported that smuggling through Ergneti is estimated to have caused an annual USD 120 million damages in unpaid taxes to Georgian budget per year.

Mainly fuel, food, wheat, and tobacco products were smuggled from Russia via breakaway South Ossetia into the Ergneti Market and then to the rest of the Georgia. The goods were also smuggled from Georgia to Russia - mainly alcohol used for producing the counterfeit vodka in North Ossetia. However, the Georgian authorities provide no estimates for the volume of this trade.

Market in Ergneti was closed down by the Georgian authorities in late May and early June, causing protest of the authorities in breakaway South Ossetia.

Latest News
25 Oct.'14 12:31
UNM Plans Protest Rally on November 15
UNM accuses government of “doing nothing” against Russia’s attempt to “annex” Abkhazia.
24 Oct.'14 22:24
Georgian President Meets Japanese PM in Tokyo
PM Shinzō Abe said Japan and Georgia are “friends.”
24 Oct.'14 16:28
Mokhe Incident Detainees Released as Govt Slammed for Mishandling Dispute
The Orthodox Church has publicly weighed in controversy, claiming right over disputed building.
24 Oct.'14 12:29
U.S. Department of State on Prosecutions of Former Govt Officials in Georgia
Concerns remain about how some cases have been handled, U.S. Department of State said.
23 Oct.'14 16:51
Abkhaz Leader Makes TV Address on Moscow-Proposed Treaty
Russia does not try to impose its proposed draft treaty, Raul Khajimba said.
23 Oct.'14 02:39
Once Mosque, Disputed Half-Ruined Building Sparks Confrontation
14 people were arrested after the incident in the village of Mokhe on October 22.
22 Oct.'14 23:48
Lithuanian FM Visits Tbilisi
Linas Linkevičius arrived in Tbilisi after visiting Azerbaijan.
22 Oct.'14 16:05
Akhalaia Sentenced to 7.5 Years in Prison
Court found ex-prison chief guilty of power abuse and torture in two separate cases.
22 Oct.'14 14:10
Top NATO Commander: ‘Partnership with Georgia Rock Solid’
NATO’s Supreme Allied Commander in Europe met Georgian PM, Defense Minister.
21 Oct.'14 23:52
After Series of Murders of Women, Govt Mulls Anti-Domestic Violence Policy
A murder-suicide case in Tbilisi university pushed the problem in the center of public attention.

About Civil Georgia
Civil.Ge © 2001-2013, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.
62