Iranian parliament seeks to raise car sale tax

Business Materials 28 December 2020 09:41 (UTC +04:00)
Iranian parliament seeks to raise car sale tax

TEHRAN, Iran, Dec.28


Iranian parliament seeks to raise tax on auto trade at Iran Mercantile Exchange to balance pricing and demand, said the head of parliament's auto industrial commission.

"The auto reorganization plan indicates that auto sale tax from trade at the mercantile exchange, in which if an individual purchase a vehicle from the exchange and wants to sell it in three years, he or she should pay 80 percent of a price difference as tax so we could prevent shady trades," said Rouhollah Izadkhah, Trend reports citing ILNA.

"Following the meeting with Iran Mercantile Exchange, they have stated in a report that the issue is applicable technically and software should be upgraded. Weekly offering of the auto at stock exchange would be consistent and if people know that auto price would be controlled a major part of demand would decline and avoid dealerships," he added.

"Liberalization of auto price was done before but it did not have a result and we are against it. Only automakers would profit from the liberalization of auto prices that is not logical. Based on our estimation liberalization and auto pricing has led to $11 billion economic rent in the past year that was neither in the interest of automakers nor people," he noted.

He went on to say that the National Competition Council supports the liberalization of prices for low production cars. The council would decide what model should be on sale at the mercantile exchange however the pricing would be based on Consumers and Producers Protection Organization.