Georgian Parliament approves first reading of changes to car excise tax

Georgian Parliament on Tuesday approved in the first reading, by 74 votes to 10, amendments to the Tax Code that change the excise taxation rules for passenger cars.

Under the new law, excise rates will be set at ₾1.5 per cm³ of engine volume for vehicles up to six years old, and ₾4.5 per cm³ for cars older than six years. Special rates differing from the main rates will remain in force, as under the current regulation.

The amendments will not apply to vehicles imported or in transit to Georgia before 2 April, which will remain subject to existing rates. For vehicles transported overland or driven into the country, the previous rates will apply if they enter Georgia by 1 July.

Irakli Kheladze, first deputy chair of the Finance and Budget Committee, confirmed that the law will take effect on Thursday.