Iran raises duty on car imports

Business Materials 1 March 2015 16:38 (UTC +04:00)

Baku, Azerbaijan, March 1

By Fatih Karimov - Trend:

The Iranian parliament has approved that duty on imports of cars to be increased by 5 percent of the freight on board (FOB) price.

The surplus income to the ceiling of 1500 billion rials (about $55 million) will be used to buy ambulances by the ministry of health, Iran's Tasnim news agency reported on March 1.

In February, Iranian MP Ali Alilou of the Parliament's Industries and Mines Committee said Iran was planning to cut all car import tariffs to zero in two year's time.

The Iranian automobile industry, the biggest non-oil sector of the economy, constituting around 10 percent of gross domestic product (GDP), boomed over the decade ending in 2011.

However, experts pointed that the administration of former president Mahmoud Ahmadinejad, which increased car import duties as much as 90 percent in 2013, led to a marked deterioration of quality in the Iranian market.