Tehran, Iran, June 24
By A. Shirazi - Trend:
Iran has banned the import of cars as part of the government's efforts to control high prices and stop capital flight from the country.
In a circular, Iranian Minister of Industry, Mine and Trade Mohammad Shariatmadari called on all relevant organizations to put on hold import orders of some 1339 goods, including foreign cars and green vehicles, Shata news agency reported.
The decision is reportedly part of efforts to stop illegal imports of goods to the country and control rising prices across Iran.
This is while experts believe that the move by the government would further exacerbate the situation and increase the prices of all goods, including vehicles.
Chairman of Parliament Economic Commission Mohammad Reza Pour-Ebrahimi said recently that the move aims to save foreign currencies, avoid the issue of capital flight and stop foreign investors withdrawing $10 billion from the country.
The prices of different models of cars reached record highs on the Iranian market on June 11, rising between 20 million and 400 million rials over the past 10 days.
According to Iranian media, the rise between 20 million and 400 million rials in the price of cars is due to foreign car manufacturers leaving Iran.
Peugeot Citroen, Mazda and Hyundai are among the car manufacturers that have already left the country due to the threat of US sanctions. Meanwhile, some other manufacturers have limited their output, and this has led to a further rise in prices.
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