Imports of vehicles decreases in Georgia
By Tea Mariamidze
Tuesday, November 7
The number of imported cars in Georgia has notably decreased in 2017, compared to the same period of last year.
In 2016-2017, the number of imported cars amounted to 138,299. In particular, last year 87,991 cars were imported in Georgia, and according to the data of 9the current year, the number is now 50,308.
Moreover, the import of right-hand-drive cars was also significantly reduced compared to the previous year.
In 2016, 36,559 right-hand-drive vehicles were imported to Georgia, while in the nine months of 2017, the number was reduced to 13,000.
The main reason of the decrease in import of right-hand-drive cars was a bill adopted by Parliament in December 2016, which envisages increasing excise tax on tobacco, motor vehicles and oil products.
The bill went into force on January 1, 2017.
The initial draft proposed by the government entailed the increase of excise taxes on motor vehicles of almost all ages, but following the parliamentary discussions, the government agreed to increase taxes only on the imported vehicles that are six years old and older.
Excise tax on a 6-to-8-year-old cars has increased up to GEL 0.8 per cubic centimeter of engine capacity; on a 9-year-old vehicle GEL 0.9; a 10-year-old GEL 1.1; an 11-year-old – GEL 1.3.; a 12-year-old – GEL 1.5; a 13-year-old GEL 1.8; a 14-year-old GEL 2.1 and above 14 years GEL 2.4
According to the new bill, excise tax on right-hand-drive vehicles was set at a three-fold amount of standard rates.
Furthermore, customs clearance fees remained unchanged for those motor vehicles, whose naval transportation was launched before publication of the law, instead of the initially envisaged date of December 1 2016.
