Georgia’s parliament approves increase in car customs clearance fees
Georgia’s parliament has approved amendments to the Tax Code in a third and expedited reading, under which the cost of clearing imported passenger cars through customs will increase
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The changes apply to both relatively new and older vehicles and are directly linked to higher excise rates. Under the new rules, cars aged between zero and six years will be taxed at 1.50 lari ($0.56) per cubic centimetre, compared with the previous system, which set a lower range of 0.8 ($0.30) to 1.5 lari ($0.56) for newer vehicles.
A sharper increase affects cars older than six years — the category most commonly imported into Georgia. In this case, the clearance cost is set at 4.5 lari ($1.67) per cubic centimetre, meaning the tax rises in direct proportion to engine size.
Excise duty on cars in Georgia is calculated based on two parameters — engine size and age. As a result, vehicles with larger engines and older cars become significantly more expensive at the import stage.
In practical terms, for a car older than six years, the formula is: engine capacity multiplied by 4.5 lari ($1.67).
Examples (rate: 4.5 lari):
- Small car (1.5 engine): 1500 × 4.5 = 6,750 lari ($2,509)
- Standard sedan (2.0 engine): 2000 × 4.5 = 9,000 lari ($3,345)
- SUV / jeep (3.0 engine): 3000 × 4.5 = 13,500 lari ($5,018)
Irakli Kheladze, the rapporteur for the bill, said the changes will come into force on 2 April 2026. The move by the ruling party is likely to affect both the volume of car imports and price dynamics on the domestic market, particularly in the segment dominated by older, relatively affordable vehicles.
Car import clearance costs to rise in Georgia
