Will the luxury car tax plan be implemented?

According to Tejarat News, President Seyed Ibrahim Ra’isi presented the 1401 budget bill to the parliament. The draft bill was released this morning. In this plan, cars up to one billion tomans were exempted from taxes.

But cars more than one billion tomans are taxed in stages.

In this bill, it is foreseen that cars from one to 1.5 billion Tomans will be subject to one percent annual tax compared to the surplus of one billion Tomans.

This percentage is equivalent to 2% for cars up to three billion Tomans, compared to the surplus of 1.5 billion Tomans.

Owners of cars up to 4.5 billion tomans, compared to a surplus of three billion tomans, must pay 3% tax.

This percentage is equivalent to 4% for cars over 4.5 billion Tomans, for the excess of this amount.

Is a luxury car tax reasonable?

But Mehdi Dadfar, secretary of the Automobile Importers Association, told Tejarat News about the plan: “The luxury car tax is not enforceable and it is not right, but the government is implementing it.”

He added: “In this way, people’s living costs increase.” When the tax on cars above one billion tomans is so much, the price of cars will increase as a result. Increasing the price of a car worth 300 million Tomans to one billion Tomans has not been in the hands of the people, but their taxes are paid by the people.

Will the budget bill be implemented?

Kazem Mohammadi Nikkhah, a car market activist, also explained to Tejarat News: “This plan is approved by the government.” It will be implemented soon and will be reviewed next year.

He added: “It remains to be seen what the government’s strategy is in recent years.” This plan is now a trial and error. This is the first time a car value tax has been introduced, so we have to wait for the result.

Why was it not implemented?

The car activist said that there are two issues regarding non-taxation in the first six months of the year. The first possibility is that the tax is not levied at all. The next issue is when to collect taxes.

“Maybe the government will collect these taxes every six months, and maybe annually,” he said. It is unknown at this time what he will do after leaving the post.

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