Bezhan Tsakadze, a ruling Georgian Dream MP and one of the initiators of the recent legislation raising excise taxes on cars up to 6 years old and older than 6 years, has defended the move amid public debate. In an interview, Bezhan Tsakadze asked, “What’s wrong with this law? Why all the fuss?”
He explained that the measure is part of a broader effort to improve environmental standards in Georgia. “The country is overloaded with cars that harm the environment. Gradually, we need to start cleaning this up. This is just the first step, and more measures will follow to bring Georgia closer to the standards of developed countries. Older cars pollute the environment, and we want to fix that. What’s wrong with that?” he said, adding that more affordable electric cars provide alternatives for citizens.
Bezhan Tsakadze also addressed concerns about potential budgetary losses and job impacts. He acknowledged that excise increases on older cars could reduce some revenue, but emphasized that the government has planned measures to mitigate negative effects. “Any law may have some negative impact on the budget, but we seek alternatives. Production and the economy must grow. People who lose jobs in one area can find work elsewhere, and retraining programs are in place. We don’t make laws blindly; we implement preventive measures to support affected citizens,” he said.
According to the explanatory note of the draft law, standardizing excise taxes for cars up to 6 years old at GEL 1.5 per cubic centimeter will likely increase budget revenues for this segment. Meanwhile, raising excise rates on cars older than 6 years is expected to reduce imports of older vehicles. The note adds that if approximately 60% of importers switch to newer cars, the potential loss of revenue from reduced older car imports could be balanced by higher-income from newer vehicles.
