How much tax should luxury car owners pay?
According to Tejarat News, from next year, the government will collect taxes from owners of luxury cars. Apparently, Mojtaba Zare, the spokesman of the budget bill consolidation commission, said: the car will not be taxed up to one billion tomans.
But cars up to the amount of one billion and 500 million tomans compared to the surplus of one billion tomans include one percent tax, up to the amount of three billion tomans compared to the surplus of one billion and 500 million tomans include two percent tax.
Up to the amount of four billion and 500 million Tomans, including the surplus of three billion Tomans, including tax of three percent, and the surplus of four billion and 500 million Tomans, including tax of four percent. (ISNA)
Luxury car tax rate
This means that from now on, cars worth more than one billion tomans must pay a tax of about 15 million tomans. Up to the amount of three billion tomans, he has to pay about 60 million tomans in taxes. Also, cars up to the amount of 4 billion and 500 million tomans must pay about 180 million tomans in taxes.
Is a luxury car cheap?
However, some market participants believe that if this plan is implemented, luxury cars will become cheaper. On the other hand, some car dealers say that collecting taxes from luxury car owners has no effect on increasing supply and reducing car prices.
Emad Jafari, a car market analyst, said about the impact of the car market on taxation of luxury cars: “As it is clear from the name of the car, people who have a luxury car have to pay a lot of incidental expenses every year.” Therefore, paying taxes on the total value of the car is not a heavy price for these people.
Jafari explained to Tejaratnews: Some say that if the government collects taxes on luxury cars, it will increase the supply and cheapness of cars. If this is not the case.
He continued: “Receiving taxes from owners of luxury cars will not increase the supply of cars in the market and as a result, prices will not fall.” Because the import of luxury cars to the country is closed and the production of defective cars of car manufacturers has also increased, this lack of cars in the market will eventually cause the price of cars to fluctuate.
The difference between the Iranian market and other countries
He stated: The Iranian market is culturally different from other countries. For example, when gasoline becomes more expensive, the price of six- to eight-cylinder cars or cars with high fuel consumption should normally decrease.
Jafari continued: “In the Iranian market, with the increase in the price of gasoline, not only did the sales of high-consumption gasoline cars not decrease, but also their prices increased.”
According to this report, this year the government predicts that 5 billion billion tomans will be taxed on luxury cars and cars over one billion tomans will be taxed.
Earlier, Emad Jafari, a car market analyst, said: “Last year’s experience showed that taxes can not affect the price of luxury cars in the market.” Owners of luxury cars who buy a car in the Iranian market many times the world price, it makes no difference for them to pay a tax of between 50 and 100 million tomans per year.
Read more about the impact of the tax on luxury car prices.