In its third reading, the Parliament passed a bill submitted by the Georgian Dream party, under which the import of goods transferred into state ownership, including passenger cars, is exempt from excise tax.
The amendments to the Tax Code were passed unanimously with 72 votes in favor.
Under current tax legislation, the import of property transferred to state ownership is exempt from value-added tax (VAT) and import duties; however, a similar exemption does not apply to excise tax.
According to the bill’s sponsors, this situation creates significant practical and systemic problems regarding excisable goods, including passenger cars.
“Despite the fact that the property is already owned by the state, the state is obliged to pay excise tax upon its import.
As a result, the principles of consistency and neutrality of the tax system are compromised. The state has to incur additional tax liabilities regarding its own asset, which makes no economic sense and requires the mobilization of additional financial and administrative resources,” — the explanatory note to the bill states.