Georgian PM: businesses could help reduce prices through social responsibility

Georgian Prime Minister Irakli Kobakhidze on Monday said businesses could contribute to lowering prices if they act with social responsibility, speaking on Rustavi 2’s programme Debates.

“One thing is that businesses are focused on maximising profit, but I believe that if they operate with social responsibility, including distributors and retail chains, price reductions are possible,” he said.

Kobakhidze pointed out that since 2012, the amount of personal income tax paid by citizens has increased 4.7 times, reflecting higher incomes that have not translated into lower food costs.

“People earn five times more and pay 20 per cent in personal income tax. In such conditions, the share of household spending on food should have fallen, but it has not, which shows there is room to reduce prices,” he added.

The Prime Minister also criticised excessive retail expansion, saying that many new stores operate at a loss while driving up distribution costs and ultimately increasing prices.

“Businesses have the right to pursue profit, and we respect that. But with social responsibility, retail chains and distributors could help ease the burden on citizens,” he said.