Caucasus Auto Import warns that a sharp increase in customs duties on cars older than six years could weaken Georgia’s position as a regional vehicle hub. According to Sales Head Aleksandre Vekua, the changes will make importing such vehicles significantly riskier for dealers.
Although older cars can still be imported for re-export, Vekua notes that limiting access to the local market reduces flexibility and increases dependence on foreign buyers. This, in turn, weakens Georgian dealers’ bargaining power and is likely to reduce profit margins.
Under the proposed changes, excise tax per cubic centimeter will rise from GEL 0.8 to GEL 4.5, a 5.6-fold increase, making domestic sales of older vehicles far less viable.
