Dangerous Effect of Tariff Increament On The Market
Recently, after the government proposed its annual budget bill in the field of income taxes on vehicle import, the vehicle import tariffs was announced unofficially. Now some importers are predicting a turbulent market for the next year due to the reduction of imports and the increase vehicle import tariff.
Khodrocar - Following the presentation of government’s proposed budget bill for 2018 to the parliament, 10 billion IRRs reduction of government revenue from income taxes on vehicle import and the increase of vehicle import tariffs, few days ago, there were some news about the new suggested tariff of vehicle import.
On the other hand, it is said that vehicle import registration website will be open on 31, December, and the importers can begin registering the new vehicle for import. But the question arises whether the new tariffs will be officially announced until the opening of this website?
During the closure of vehicle import registration website, the prices of some imported cars rose and it unclear that with the reopening of this website, the prices will be reduced or not.
Mehdi Dadfar, Secretary of Iranian Automobile Importers Association told Khodrocar regarding the issue: "After the reopening of vehicle import registration website, price reduction seems impossible and it is not predicted that the prices increase either.”
He said that the price of domestic vehicles likely to be increased more than the imported ones.
He explained: "By increasing the car import tariff, the price and condition of imported vehicles will certainly not be worse, because the situation will not get worse than current.”
According to him, one of the issues of market engineering was to raise the price of domestic cars for the next year, but in some cases, there is no thought about some possible problems.
He said that another thing which remained unsolved is issue of vehicles’ pollution and scrappage.
The goal of vehicle tariff’s increase and reducing the imports, is in order to raise the price of domestic vehicles and compensation of their financial losses. It has nothing to do with improving the products’ quality and variety.
Khodrocar reporter: Negar MirKarimi
Khodrocar translator: Maziyar Jafarieh
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