Rezo Tabatadze, founder of HOA Auto Import, stated that the announced excise tax increase on vehicle imports, effective April 1, has already pushed car prices up in Georgia. Sellers are raising prices in anticipation of higher import tariffs, which Tabatadze warns will further increase costs for consumers.
He noted that the legislation’s goals, renewing the vehicle fleet and improving ecology, may backfire. “Instead of newer cars, people will keep and repair older vehicles, which will age the fleet further and negatively impact the environment. The effect will be the opposite of what was intended,” Tabatadze said.
Tabatadze also highlighted that demand has sharply dropped and sales could be halved in the coming months. Many importers have already stopped acquiring vehicles produced before 2020 to avoid the higher tariffs. He called for a meeting with Prime Minister Irakli Kobakhidze, stressing that sector specialists were not involved in drafting the law.
As a solution, Tabatadze suggested the government should focus on encouraging the import of newer cars rather than raising taxes. He emphasized that vehicles from 2018–2020 meet the Euro 5 standard and could be imported without harming the environment, aligning with international practices.
