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IDS Borjomi Georgia Expresses Negative Position regarding Three-Time Increase of Fee on Natural Resources: IDS Borjomi Georgia’s Statement

Published: April 4, 2013 | 2:32 pm
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(CNA)-The company IDS Borjomi Georgia expresses negative position regarding the government’s decision initiating three-time increase of fee on natural resources. The increase of the fee will negatively influence on IDS Borjomi’s production, especially in respect to the competitiveness of Borjomi mineral water both in Georgia and export markets like Russia Ukraine, etc.
Till now the fee on natural resources for our company was the highest on the market and it made EUR 5,9-m3 while for other mineral water companies the fee was EUR 4,1-1m3.
In CIS and European countries the fee level varies from EUR 0,1-1m3 to EUR 5,7. The only country where this fee is higher than here is France, however, it must be noted that in France mineral water companies pay preferential VAT. If VAT is 9% water producers pay 7%. Thus, we can say that the fee that is defined for our company today is the highest in CIS area and in Europe.
Currently Borjomi mineral water brand is represented in 40 countries worldwide. For years IDS Borjomi Georgia has been making a big effort and has put dozens of millions of investments in the Borjomi brand development on export markets. We’re concerned about today’s decision, which puts current positions of Borjomi brand under risk on export markets and seriously threatens its further development perspectives.

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