During the Cabinet meeting on Sunday, import tariffs for hybrid vehicles were once again amended after the government relented to mounting public pressure.
Saeed Bastani, spokesman of Majlis Industries and Mines Commission, said the Cabinet discussed hybrid car tariffs and set the same at 5-20%, ICANA reported.
It comes as no surprise that the administration raised the tariff rates. Ever since the government introduced a new directive in January increasing hybrid tariffs from 5% to 15-65%, the public and environmentalists had not stopped denouncing the decision.
The government might be too late though. The Majlis Article 90 Commission (that investigates complaints concerning the performance of the parliament, executive branch and judiciary) announced that an order issued by the Court of Administrative Justice must be upheld.
CAJ's order issued in February dictates that the government must temporarily reduce tariff rates to its previous levels (5%) until a final decision is made by the court in the next few months.
The Industries Ministry categorically denied ever receiving such an order, therefore the Article 90 commission held a meeting with government and customs officials and made it clear that the court order is binding and must be fully implemented.
If the parliament manages to overrule the administration's decision, import tariffs for hybrid vehicles will return to 5%.
The government's official website has not yet confirmed the news about the new tariff rates set in the Cabinet meeting, but the delay might be due to the impeachment of two ministers. Roads Minister Abbas Akhoundi and Cooperatives Minister Ali Rabiei survived the vote of confidence called on Tuesday.
With the crisis off the administration’s hands, the government will hopefully find the time to address the draconian tariffs imposed on hybrid car imports.
> Market Disruption
The confusion is disrupting the car market once again. Since summer, the government inaction on a final decision regarding car tariffs led to a rise in auto prices.
Car dealers are demanding more money from customers to deliver the cars.
Kourosh Morshed-Solouk, the head of Iranian Automobile Importers Association, said importers have lost 8 trillion rials ($166 milion) since the registration website was closed earlier in summer.
Since auto import rules were suspended in June 2017, the online auto import registration website locally known as Sabtaresh was shut down by authorities along with the mandatory order registry.
As per the law, after getting an auto import permit from the Ministry of Industries, local firms must also register online with the Trade Promotion Organization for every single unit.
Some officials say 7,000 vehicles got stuck in the customs after the website was shut down.
Last Sunday, the government finally ruled over the fate of these cars. Vehicles under $40,000 can be cleared, according to the tariffs standing at the time they entered the country's borders.
As per the new import rules, cars worth over $40,000 are barred from entry into Iran. The government says importers, who have brought in such vehicles before the latest import rules was issued, must pay 40% of their profit to get customs clearance for the vehicles.
