Excise Duties on Hybrid Cars Reduce by 50 %

President of Georgia Giorgi Margvelashvili has signed a law on excise tax, reducing it by 50 percent on hybrid cars. The tax benefits came into force on May 1. Lawmakers noted that the introduction of benefits for cars with hybrid engines will allow them to eventually replace ordinary cars and significantly improve the ecological situation in Georgia.

According to the current legislation, cars are subject to excise duty in accordance with the year of production. In particular, for cars released less than a year ago the excise duty will be 1.5 Lari per 1 cubic centimeter; one year or more – 1.4 Lari, two years – 1.3 Lari, three years – 1.2 Lari, four years – 1 Lari, five years – 0.7 Lari, six years – 0.5 Lari per 1 cubic centimeter. These rates apply to hybrid cars working on ordinary fuel and battery.

The amendments to the Tax Code allow hybrid cars to gain a 50 percent tax discount. “Benefits for hybrid cars will lead to gradual replacement of conventional hybrid cars, which will reduce the consumption of petroleum products and will have a dual effect – improving the ecological condition of the country and reducing fuel import costs,” it was said in the Parliament of Georgia.

The amendments were prepared on the initiative of the Free Democrats parliamentary faction. In the draft version of the tax amendment, all cars with a hybrid engine were exempt from excise and import taxes.

The authors believe that today it is much more important to encourage the import of environmentally friendly cars to Georgia, which will update the car fleet of the country and improve financial and economic indicators.

Eka Karsaulidze

02 May 2016 17:01