Feasibility Study on the Possibility of an Increase in Import Duty for Old Vehicles

The project aimed to conduct a feasibility study within the framework of the regional project 'Sustainable Urban Mobility in the South Caucasus' (Mobility4Cities) in collaboration with the Ministry of Environmental Protection and Agriculture of Georgia (MEPA). As part of Georgia's Climate Action Plan, a study was conducted to assess the feasibility of increasing the import duty for old vehicles. Recommendations were developed after engaging with relevant stakeholders, analyzing the current situation, and gathering data on the best international practices. As a result, the economic feasibility of implementing a progressive import duty on vehicles has been examined providing that the proposed import taxes would be based on the age of the vehicle and its engine capacity, with a direct proportional growth rate. This could potentially result in significant environmental and economic benefits for Georgia. The import duty rates would increase for vehicles that are 5 years old, 6 to 10 years old, and over 10 years old.