Georgia ditches car import ban but slaps heavy taxes on older models

The Georgian government has scrapped its proposed ban on importing passenger vehicles older than six years. Instead, it will impose a much higher excise tax on these cars. The change will affect thousands of imported models and push up costs for buyers.

The new tax targets all passenger vehicles over six years old. The excise rate per cubic centimetre of engine volume has jumped from 0.8 GEL to 4.5 GEL—a 5.6-fold increase. This will make importing older cars far more expensive.

A 1.5-litre engine car now faces an excise tax of 6,750 GEL, up from 1,200 GEL. For a 2-litre engine, the cost rises to 9,000 GEL, compared with 1,600 GEL before. Popular models like the Ford Fusion, Toyota Camry, Volkswagen Jetta, Subaru Forester, and Ford Fusion Hybrid will all see sharp price hikes.

The government has not explained its economic or environmental reasons for the tax rise. The move replaces the earlier plan to ban older imports entirely, shifting the focus to higher costs instead.

The tax change will raise the total customs clearance cost for importers and buyers. Owners of older vehicles will now pay significantly more to bring them into Georgia. The policy shift comes without clear details on its intended impact.