Georgia’s parliament has approved a significant increase in car customs clearance fees following a third and expedited reading of amendments to the Tax Code. This decision, detailed here, will directly impact the cost of importing passenger vehicles. The changes apply to both newer and older cars, aligning with rising excise rates.
Specifically, vehicles aged between zero and six years will face a tax of 1.50 lari ($0.56) per cubic centimetre. Previously, newer vehicles within this age range were taxed between 0.8 ($0.30) and 1.5 lari ($0.56). A more substantial rise applies to cars over six years, the most frequently imported category.
The clearance cost for these vehicles is now set at 4.5 lari ($1.67) per cubic centimetre, directly proportional to engine size. The government initially considered a complete import ban for older cars. Georgia’s excise duty calculation utilizes engine size and age, resulting in higher costs for larger engines and older vehicles.
For cars over six years, the calculation is straightforward: engine capacity multiplied by 4.5 lari ($1.67). Examples illustrate this: a small car (1.5 engine) would cost 6,750 lari ($2,509), a standard sedan (2.0 engine) would cost 9,000 lari ($3,345), and an SUV (3.0 engine) would cost 13,500 lari ($5,018). Irakli Kheladze, the rapporteur, noted the changes will take effect on 2 April 2026.
This move is anticipated to influence both import volumes and market prices, especially concerning affordable, older vehicles within georgia.
Topics: #georgia #parliament #increase
