As of July 1, the transitional period for Georgia's new vehicle excise tax rules has expired. Importers who began transporting vehicles before April 1, 2026, but failed to bring them across the Georgian border by July 1, can no longer benefit from the previous excise rates.
Under the new system, effective since April 1, excise tax is based on vehicle age. Cars up to six years old are taxed at GEL 1.5 per cubic centimeter of engine capacity, while vehicles older than six years face a threefold higher rate of GEL 4.5 per cubic centimeter. Hybrid vehicles continue to benefit from a reduced rate of 40% of the standard excise, while right-hand-drive cars remain subject to triple the base rate.
The amendments, adopted by Parliament in March under an expedited procedure, aim to encourage the import of newer vehicles. Lawmakers argued that older cars produce higher emissions, consume more fuel, and pose greater safety risks, making the higher excise on older imports part of a broader effort to modernize Georgia's vehicle fleet.
