Georgia’s government has opted for a higher tariff instead of a ban on importing older vehicles, sparking debate about its impact. Prime Minister Irakli Kobakhidze announced that the customs clearance tariff for cars exceeding six years will significantly increase. The decision, framed as an environmental measure, aims to improve air quality.
However, experts believe this approach will simply make importing older vehicles more expensive. Under the new regulation, the excise tax will be set at 4.5 lari per cubic centimetre of engine capacity. Previously, the duty for vehicles aged between six and nine years began at 0.80 lari and escalated to a maximum of 2.4 lari.
This represents a substantial increase, potentially rising by 200-500%, depending on engine size. For instance, a 2017 hybrid with a two-litre engine could face a tax increase from approximately 1,800 lari to around 9,000 lari. Right-hand drive cars will continue to bear a three-times higher rate.
Initially, the government planned a complete ban, but faced criticism and ultimately chose the tariff route. Economist Roman Gotsiridze suggests that, in effect, the import of older cars is now banned due to the exorbitant duties. This policy in Georgia aims to protect the environment, but the increased cost presents a significant barrier for importers.
The government maintains this adjustment considers private sector and citizen interests, prioritizing environmental safeguarding and clean air.
Topics: #older #georgia #tariff
Georgia has chosen a higher tariff over a complete ban on importing vehicles older than six years, generating discussion regarding its consequences. Prime Minister Irakli Kobakhidze revealed that the
A higher tariff has been chosen over a ban, raising questions about the cost of importing older cars into Georgia.