GD Authorities Replace Six-Year-Older Car Import Ban with Up to Fivefold Excise Tax

2026-03-12 - 14:46

Georgian authorities have dropped their earlier plan to ban the import of vehicles older than six years after protests, but will instead impose a high excise tax on such cars, fueling criticism that the move amounts to a de facto ban through around a fivefold tax increase. While Georgian officials cite environmental concerns behind the decision, critics say the move will force buyers to pay up to GEL 10,000 [USD 3,700] in taxes alone if they decide to purchase a car older than six years. “A customs clearance tariff of GEL 4.5 will be imposed on vehicles older than six years, meaning the excise tax will be set at the corresponding amount – GEL 4.5 per cubic centimeter,” Kobakhidze said ahead of the government cabinet meeting. “Therefore, the import ban will be replaced with the respective increased excise tax rate.” Currently, the excise tax on imported cars ranges from GEL 0.8 to GEL 2.4 per cubic centimeter, depending on the vehicle’s age, type, and engine size. Under the new rate, the excise duty for importing a 2018 Toyota Prius – one of the most popular cars in Georgia – would rise from the current GEL 1,440 to as much as GEL 8,100, in addition to customs and vehicle clearance fees. Kobakhidze said the measure is aimed at addressing environmental concerns. “This decision is very important so that we take care of ecology, environmental protection, and air cleanliness,” he said, adding that the government adjusted its initial plan after considering the interests of “the relevant private entities” and citizens, as the matter “had been widely discussed in society.” The critics, however, warned against “false celebration,” with Iago Khvichia, leader of the libertarian Girchi party, saying that the new policy would increase the customs taxes fivefold. “This naturally means that this is a different form of ban,” Khvichia said in a video posted on Facebook, alleging that the authorities were seeking to support their own businesses selling newer cars. The ruling Georgian Dream first proposed banning the import of cars older than six years on February 12. At the time, Kobakhidze said the number of vehicles in Georgia had increased “significantly” and “sharply” in recent years. “In 2012, 864,000 vehicles were registered in Georgia, and according to this year’s data, that figure has exceeded 2 million, so we can see the scale of growth we are talking about,” Kobakhidze said during the February government meeting. The initiative drew criticism, including from figures usually supportive of the ruling party. Dimitri Khundadze, an MP from the ruling party’s offshoot People’s Power, said in a social media post that the decision “lacks any logic” and “must be reviewed,” arguing that it would “neither renew the autopark nor improve ecological conditions.” Khundadze also warned that the regulation could create problems in regions where municipal or intercity public transport does not exist. Such restrictions, he said, would weigh particularly heavily on middle- and low-income citizens. The proposal also prompted protests from car importers and dealers. On February 22, traders gathered near the Rustavi Auto Market to oppose the plan, collecting signatures and calling for a meeting with authorities and the creation of a working group. Some of them suggested that the government raise the proposed import age limit to 10 years. According to the National Statistics Office (Geostat), by the end of 2025, a total of 1,914,908 vehicles were registered in Georgia. More than 882,418 of them, about 46%, are registered in Tbilisi. Data also shows that more than 1.5 million vehicles in Georgia are over 10 years old. Another 265,041 are between five and 10 years old, 61,335 are between two and five years old, and 39,995 are under two years old. The most popular car brands in the country are Mercedes-Benz, Toyota, Ford, VAZ, and Opel. In January, motor cars were also the top import commodity, accounting for USD 150 million, or 13.3% of Georgia’s total imports, according to Geostat. Also Read: 04/03/2026 – GD Adopts Package Restricting Grants, Political Activity, Lobbying, Government Non-Recognition