Mounting Pressure Compels Iran Government to Rethink Hybrid Import Tariffs

The Ministry of Industries has sent an amended version of auto import rules to the Cabinet that proposes newly-imposed higher import tariffs on hybrid cars be cut and be based on the vehicles’ fuel consumption and emissions.

Following a presidential directive, the ministry has revised the higher customs duty on hybrid vehicles. In the new system, import tariffs on such vehicles will be determined based on fuel consumption and emission rates, the ministry’s public relations office announced late Sunday. Further details were not available.

Currently import tariffs are determined based on vehicles’ gasoline engine capacity. In the closing days of 2017, the government passed an amended version of auto import rules as per which customs duty on hybrids were increased from 5% to 15-65%.

The move led to public outrage and 104 MPs (from the 290-member chamber) in a letter called on the government to rethink its decision.

As per the current rules, vehicles are categorized into four groups: gasoline-powered cars, hybrid electric vehicles (HEV), plug-in hybrid electric vehicles (PHEV) and all-electric cars.

Depending on engine capacity, import tariffs on HEVs vary between 25% to 65% while duties on PHEVs are lower ranging between 15% to 55%.