Iranian imported automobile duty to reduce to 70%

Iranian imported automobile duty to reduce to 70%

Iranian import tariff on passenger cars will be reduced to 70% within the next five years. The tariff had already been dropped from 170% to 147% and then to 130%. The Secretary of Automobile Manufacturing Association said that this tariff cut is a state policy and is implemented to encourage local automakers to compete with international standards. It is also pointed out that if Iranian automakers make efforts to develop the technology applied by foreign automobile producers, automobile imports will not damage the domestic automotive industry. In Iran before the 1979 revolution, importing various automobiles with minimum tariffs was unrestricted. This situation had no negative effect on the domestic automotive market. As a result, Iran wishes to follow the same policy. Many experts believe that domestic automakers can compete with foreign-made automobiles within the next five years when the tariff decreases to 70%.