The Association of Auto Importers has warned that the planned increase in car excise duties in Georgia could have a severe negative impact on the sector. According to the association, 30-40% of companies could cease operations, while 50-60% of car dealers may become unemployed.
Association Chairman Aleksi Noniadze told TV Program Business Course that most people will be unable to afford the higher taxes, leading to a sharp drop in sales and employment in the sector. “For example, a 2016–2017 vehicle that cost $3,000 locally would require almost the same amount in excise duties, effectively pushing the price to the level of a 2022–2023 car. Most of our population cannot afford this,” he said.
The association estimates that the sector’s turnover could fall by around $2.6 billion, representing roughly 3% of Georgia’s economy. Noniadze stressed that the excise hike would significantly reduce consumer demand, threatening businesses and jobs.
The Georgian Parliament recently approved, in the first reading, amendments to the Tax Code that significantly increase excise rates on cars older than six years and raise duties for vehicles under six years old.
