The government of Georgia has abandoned its earlier plan to ban the import of passenger vehicles older than six years, opting instead to introduce a substantially higher customs excise tax on such cars.
Prime Minister Irakli Kobakhidze announced that the excise rate per cubic centimeter of engine volume will increase from 0.8 GEL to 4.5 GEL, representing a 5.6-fold rise. The government stated that the decision replaces the proposed import ban with what officials describe as a more flexible regulatory mechanism.
The higher excise tax will significantly increase the cost of importing commonly purchased vehicles.
For example:
- A 1.5-liter engine car will now cost 6,750 GEL in excise tax, up from 1,200 GEL.
- A 2-liter engine car will cost 9,000 GEL, compared with 1,600 GEL previously.
The new rate will apply to all passenger vehicles older than six years, greatly increasing the total customs clearance cost for importers.
Several widely imported models in Georgia will see major increases in excise duties, including:
- Ford Fusion (1.6L) — excise tax rising from 1,280 GEL to 7,200 GEL
- Toyota Camry (2.5L) — from 2,000 GEL to 11,250 GEL
- Volkswagen Jetta (1.5L) — from 1,200 GEL to 6,750 GEL
- Subaru Forester (2.5L) — from 2,000 GEL to 11,250 GEL
- Ford Fusion Hybrid (2.0L) — from 1,600 GEL to 8,000 GEL
The government had previously considered restricting imports of cars older than six years entirely but ultimately opted for higher taxation instead of an outright prohibition.
