Some construction companies say the fee on imported rebar has increased material prices and construction costs. Giorgi Mirtskhulava, founder of Bemoni, said some companies switched to locally produced rebar after the fee was introduced, but argued that the measure has created both benefits and challenges.
“Supporting local production through different methods is welcome, because when local production develops - whether it is rebar or other construction products - it is good for the country and for construction companies as well,” Mirtskhulava said. However, he noted that higher costs are affecting construction companies seeking quality materials at competitive prices.
“When they introduced the fee, all contracts that had already been signed became more expensive. The fee was introduced because cheaper products were entering the market, and Georgian construction companies were buying cheaper rebar, which made it difficult for local rebar production to develop,” he said.
Mirtskhulava said the government should find a balance between supporting domestic production and limiting the impact on construction companies. “We are helping one side while creating a problem for another,” he said, suggesting alternative measures such as reducing other taxes to lower local producers’ costs. The GEL 420 fee on imported rebar has been extended until March 1, 2027, under a government decree signed by Prime Minister Irakli Kobakhidze.
