The head of the Auto Importers Association, Aleksi Noniadze, says that changes in vehicle customs clearance costs are already affecting the labor market, with some companies laying off employees while others are hiring due to staff shortages. He made the remarks in an interview with BMG while assessing the impact of the recent tax changes on the automotive sector.
According to Noniadze, the effects of the April increase in vehicle import taxes will become more visible within a month, as market conditions continue to adjust. He said the industry is currently in a transition period, during which it will become clear how many companies remain in the market and how many exit.
He noted that the situation is particularly difficult for car dealers, as many vehicles imported earlier are still in transit or unsold. Until these stocks are cleared, it will be difficult to assess the full impact, although earlier estimates suggested that 60–70% of dealers could leave the market. He added that holidays have temporarily slowed activity, delaying a clearer picture of demand.
Noniadze also said communication with government agencies will continue, but he does not expect additional relief measures. Since April 1, excise taxes for vehicles aged 0–6 years were set at 1.5 GEL per 1 cm³ of engine capacity, while vehicles older than 6 years are taxed at 4.5 GEL per 1 cm³, significantly increasing import costs.
