According to Alexi Noniadze, head of the Auto Importers Association, citizens will be harmed by the increase in excise duty on customs clearance of cars older than 6 years, because the vast majority of them do not have the means to pay a large amount for customs clearance.
As Noniadze stated in “Main Media Center,” they will definitely appeal to Parliament and demand to be involved in the negotiation and discussion process.
“A new draft law is being introduced in the Parliament of Georgia that raises the obligation for customs clearance. This mainly concerns cars older than 6 years. Perhaps a large part of society does not know that the excise tax on customs clearance of cars older than 6 years is also increasing. If it used to be 80 tetri for a 6-year-old car, it becomes 1.50 lari. This makes it more expensive both for buyers of new cars and for owners of relatively older, higher-age vehicles. In fact, this affects a sector like auto import. Consumers—our country's citizens—will suffer. According to Geostat data, more than 95% of citizens do not have the means to purchase a car older than 6 years. Accordingly, once this regulation comes into force, in the best-case scenario only 5% will be able to afford a car; in other cases, it will be inaccessible to 90% of citizens. It turns out, for example, that the customs clearance of a 2016 car will cost the same amount as the car itself was purchased for. In fact, if we have made the customs clearance fee so expensive that it equals the price of a 2022–2023 car, then what is the logic in this? Why should someone buy a 2015 or 2016 car when they could buy a newer one? This is exactly the issue: the consumer does not have the means or luxury to pay such a high amount,” Noniadze stated.
They demand the creation of a working group where sector representatives will have the opportunity to conduct an evidence-based dialogue.
“In connection with this issue, we definitely want to appeal to Parliament. We want to be involved in the negotiation and discussion process. According to our information, they plan to discuss this draft law this week and adopt it under expedited procedure. We will certainly have questions regarding this topic. We also have certain demands: the first issue is that the 6-year age limit should be reviewed and raised to 10 years. The second issue is that the excise tax for cars up to 10 years old should be set at 1 lari and 50 tetri per cubic centimeter of engine displacement, and for cars older than 10 years at 4 lari and 5 tetri. Also, a working group should be created where sector representatives will have the opportunity to conduct an evidence-based dialogue. We are not demanding the cancellation of regulations. We demand a fair, economically justified decision tailored to the country's interests,” Noniadze stated.
According to him, before the government announced the decision, there was no consultation with sector specialists or with them.
“In the explanatory note it is directly written that no consultation was held with anyone. Either the author of the explanatory note is lying, or the ministers are lying when they say they consulted with sector specialists. Personally, no such communication took place with us or with sector specialists so that we could sit at the table, have negotiations, exchange arguments, and wait for a response. Nothing of the sort happened,” Noniadze stated.
The Georgian government no longer prohibits the import of cars older than 6 years into the country. Instead, by government decision, the excise duty on car import will be set at a specific amount—namely 4.5 lari per cubic centimeter. As the Government Administration told Interpressnews, the new tariff for customs clearance of cars older than 6 years will enter into force from April 1.
