Manipulation of Import Tariffs in Favor of Automakers; A Parliament Member Claims Car Imports Have 'Rents'

The story of importing used cars has finally reached its final station with the government's approval, but this approval has faced significant criticism due to the increase in import tariffs up to 171%. This has raised suspicions of 'indirect support' from the government for automakers and has also impacted the confidence vote for the new Minister of Industry, Mine and Trade (IMT). During the confidence vote session for the new IMT minister, a parliament member raised the issue of the 'car mafia' and stated that 'previous IMT ministers fell into the trap of the automotive mafia after their election,' questioning how we can be sure that Ali Abadi will not fall into the automotive mafia's trap as well. Jalal Mahmoudzadeh, who spoke against the minister, emphasized that the proposed minister has no plan to organize the car situation. According to Iranian media reports, the government announced the import of cars and an increase in import profits to amend tariffs and commence imports. While the import approval has been issued with an increase of up to 171% in tariffs, the government had previously claimed that this action would create competition aimed at reducing prices and regulating the car market. In this context, a parliament member reacted to this approval by stating that 'there is money in car imports, and it is given to state companies, not the private sector.' Gholamreza Noori Ghazaljeh emphasized in interviews that 'even if the parliament makes imports mandatory, the government will manipulate the situation with its tools to raise costs, keeping the current situation unchanged.' He considered the increase in import tariffs as government support for automakers, stating that under these conditions, imports will not make a difference, and they will still 'favor the production of low-quality domestic vehicles.' A faculty member from the Automotive Engineering Department at the University of Science and Technology also mentioned to the ILNA news agency that importing second-hand cars disrupts the Central Bank's game in the organized currency market, as it 'gives certain individuals permission to sell dollars at whatever price they want.' Amir Hassan Kakayi believes that this action does not support consumers and will only provide an opportunity for some large companies to sell their dollars outside the Central Bank system and at free prices. The astronomical increase in car prices; the head of the exhibition dealers' union: prices have increased '19 times' in five years. A parliament member: Importing 'used cars' has been removed from the 2023 budget law. The imbalanced car market in 2022; the time of the pride throne. The two billion dollar rent of car imports; the IMT minister: current cars cannot improve standards.