A new draft amendment to the Tax Code, registered by Georgian Dream MPs, proposes higher import duties on cars up to 6 years old. Under the draft, the excise rate for vehicles aged 0–6 years will be set at GEL 1.5 per cubic centimeter, while cars over 6 years old will face a rate of GEL 4.5 per cm³. Previously, older cars benefited from lower rates - for example, a 6-year-old car with a 2.5L engine currently incurs an excise of GEL 2,000, which would rise to GEL 3,750 under the new rules. Hybrid vehicles under 6 years old would receive a 60% excise reduction.
The legislation aims to reduce Georgia’s reliance on older vehicles, improve road safety, fuel efficiency, and lower emissions. According to the draft, the current excise system insufficiently incentivizes importing newer cars, as the low rates on 6–8-year-old vehicles make older imports economically attractive. The proposed changes are intended to create a stable, predictable tax environment and encourage the import of newer cars.
The explanatory note does not provide a direct estimate of additional revenue, but 2025 excise duties from car imports generated GEL 329 million for the budget. It notes that raising excise on older vehicles may reduce imports in that segment, but a shift of about 60% of importers to newer cars could offset lost revenue.
Although the government supports the initiative, the draft law was initiated by Georgian Dream MPs, not the government administration.
