Iran cuts car import duty

Business Materials 13 March 2010 12:46 (UTC +04:00)

Iranian parliament has approved a bill to reduce car import duties by 20 percentage points to 70 percent during the upcoming year which will start on March 21.

The decision is aimed to boost competition among domestic car manufacturers and persuade them to improve quality of their products, the Mehr News agency reported on Wednesday.

Iran Khodro, the Middle East's biggest car maker, said on Sunday it was breaking its own production record in the 2009/2010 year but it expressed concern about plans to cut high tariffs on imported vehicles.

Iran Khodro Managing director Javad Najmeddin said such a move would help international companies from countries "which are issuing resolutions against us," in reference to UN sanctions imposed on the Islamic Republic over its nuclear activities, Reuters reported.