Government's Revenue from Automobile Industry

KhodroCar – Iran’s president Hasan Rouhani submitted the budget proposal for the next Iranian fiscal year to the parliament with 10 thousand billion IRRs decline in the tax income section while the automotive industry is struggling with the problems of vehicle order registration website shut down for more that 5 months.

Now, it is a question that is the government able to decrease the income for next year? The 10 thousand billion IRRs decline from vehicle import tax could be an alarm for the government’s income because this 70 percent reduction won’t be logical.

The important question is that is the 70 percent decline of the government’s income from vehicle import tax is logical? Regarding to this question, auto industry expert, Farbod Zaveh said "This has been achieved in the eight months of this year and if the importing tariff doesn’t increase in the next days, the suggested income in the next year budget will be certain.”

"If tariffs fix on the 5 percent. This won’t happen because the market tends to go toward hybrid vehicles and the government’s income and tax will be declined.” He said to KhodroCar reporter.

"Importing decrement doesn’t have any positive or negative points for the auto industry, but the government’s income from CKDs is important and if the CKD’s tariffs don’t increase then the importation tends toward full CKDs and the government’s income from vehicle import will completely disappear.” Zaveh continued.

"The share of vehicle import is 10 percent in the future perspective plan and we are not reaching this number so we shouldn’t try to decline it now.” He said. "This budget proposal is planed in Rouhani’s government while the future perspective plan was approved by the same government and this is a reason of the difference between the speech and performance of this government.”

KhodroCar Reporter: Negar MirKarimi

KhodroCar Translator: Amin Zamani