Economy, Auto

New, Old Vehicle Registrations to Cost More in Iran

New, Old Vehicle Registrations to Cost More in Iran
New, Old Vehicle Registrations to Cost More in Iran

The government expects to earn 18.3 trillion rials ($460 million) in the next fiscal year through two automotive charges.

The proposed budget for March 2017-18 shows the amount will be raised from the sale of car registration plates and fees to be collected from the sale of vehicles in the new and second hand markets, reported.  

President Hassan Rouhani’s budget for the next fiscal was presented to the Majlis in December the outlines of which have been approved in the chamber.  

The administration expects to generate 11 trillion rials ($276.5 million) through new taxes on registration plates alone.

It also expects to make 7.4 trillion rials ($184 million) from taxes on transferring vehicle ownership rights.

Independent observers, however, say the government will only be able to rake in 6.5 trillion rials ($163.5 million) from this source while 8.5 trillion rials ($212 million) will be earned from selling registration plates—amounting to a total of 15 trillion rials ($375.5 million).

For the outgoing fiscal year, the government had forecast that it would earn 7.5 trillion rials ($185.8 million) from services related to transferring vehicle ownership and 7.7 trillion rials ($193 million) from number plates.

During the eight months of the current fiscal year that ends in March, the government procured 3.8 trillion rials ($95.3 million) from the former source and 6.4 trillion rials ($159 million) from the latter. 

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