According to Georgia’s Prime Minister Irakli Kobakhidze, instead of banning the import of cars older than six years, the government will significantly increase the tariff for their customs clearance. The authorities say the decision is linked to environmental goals. However, experts argue that in practice it will simply make importing older vehicles much more expensive.
Higher tariff instead of a ban
Kobakhidze said that under the new regulation, the excise tax for cars older than six years will be set at 4.5 lari (about $1.66) per cubic centimetre of engine capacity. This means that importing older vehicles will not be prohibited, but the cost of clearing them through customs will rise sharply.
According to the government’s explanation, the change is aimed at protecting the environment and improving air quality. Kobakhidze said the adjustment to the regulation was made taking into account the interests of the private sector and citizens.
“This decision is important for environmental protection — safeguarding the environment and ensuring clean air is our main motivation,” he said.
Under the new rules, the excise tax on cars older than six years will rise sharply. Previously, the excise duty for vehicles aged between six and nine years started at around 0.80 lari ($0.29) per cubic centimetre of engine capacity and increased as the vehicle aged, reaching a maximum of 2.4 lari ($0.88). Under the new regulation, the rate jumps to 4.5 lari, representing an increase of roughly 200–500%.
The price will depend directly on engine capacity. For example, importing a 2017 hybrid car with a two-litre engine previously cost about 1,800 lari ($663) in excise tax. Under the new rules, the tax would rise to around 9,000 lari ($3,315).
For right-hand drive cars, the excise rate will continue to be three times higher.
Revision of the initial decision
Initially, the government planned much stricter measures. On 12 February, Kobakhidze said that from 1 April Georgia would completely ban the import of cars older than six years, with the exception of electric vehicles.
At the time, the authorities also justified the move as an environmental measure, saying the regulation would not affect re-exports or citizens who already own older vehicles.
However, the initiative soon faced criticism both from business groups and in political circles. Even Dimitri Khundadze, a representative of the ruling party’s satellite group People’s Power, said the decision should be reconsidered.
In the end, the authorities opted to introduce a financial barrier instead of a full ban. The step formally leaves the import of older cars possible, but makes it significantly more expensive.
According to economist Roman Gotsiridze, the import of cars older than six years is effectively banned — simply through very high duties.
“This makes importing used cars essentially pointless,” the economist said.