Next year, the government will increase excise for automobile import. General Director of the company “Caucasus Auto Import”, Giorgi Supatashvili talks about the topic.
Next Year the excise tax will increase and this is important for business. Will it have an influence on your business?
No matter if it is an auto business or any other kind of business, it is necessary to have a period of time which is enough for companies to change their plans and follow the new rules. This is very important condition and it should have duration of 6 months. One year would be nice, but 6 months should be enough.
Concerning the growth of excise, this will of course result in increasing the prices for automobiles and It will have an effect on the customers. Excise should be increased, it is a good decision but it should not include all the automobiles but only the certain models considering when the car was released. The cars older than 10 years should not be allowed in the country. We have mentioned before that it is necessary to regulate this field, so that old cars will not be imported in the country anymore.
Will it also have an effect on re-export?
No, It will have nothing to do with re-export.
What is your opinion about government politics, on the one hand they talk about the Estonian tax of profit and on the other hand, it should allow business companies to earn more money for investment and at the same time, they talk about increasing the excise…
In any case, if one tax will be decreased and compensate it with another tax, in the end, balance will be maintained. It is definitely a good idea that business is to reinvest in different directions in the company. If the excise tax will be low, it won’t be too much trouble for the customer. We have an experience and we express our opinion. This should not start on 1th of January.