Import tax on economy cars with small engines will increase by over 500 per cent this year, while tax on luxury vehicles will decrease by nearly 35 per cent, according to new budget proposals
Import tax on economy cars with small engines will increase by over 500 per cent this year, while tax on luxury vehicles will decrease by nearly 35 per cent, according to new budget proposals
Import tax on economy cars with small engines will increase by over 500 per cent this year, while tax on luxury vehicles will decrease by nearly 35 per cent, according to new budget proposals.
Electric and hybrid vehicles will face 100 per cent import taxes, up from 15 percent - a 500 percent increase.
Similarly, taxes on economical petrol vehicles will rise by more than 400 per cent.
Meanwhile, import taxes on luxury vehicles with engines above 2000cc will drop by about 35 per cent.
The changes come as Iran’s auto market already faces supply shortages and high prices.
Critics say the new policy will worsen inflation, strengthen existing monopolies, and further burden middle- and lower-income consumers.
The reduced taxes on luxury cars will make them more accessible to wealthy buyers, potentially widening socioeconomic divisions.
When vehicle imports were approved in 2022, the stated goal was to promote competition, break monopolies, and regulate the auto market.
The new tariff structure has raised questions about whom these changes are designed to benefit.
Media and social media discussions are focused on whether the policy aims to support affluent consumers and luxury car importers rather than broader economic objectives.