TEHRAN - Upon the approval of the proposal of the Ministry of Industries and Mines on automobile imports by the cabinet, import of automobiles will be liberalized.

The Ministry of Industries and Mines has set new conditions for the import of automobiles with a goal to develop the automobile industry. The Ministry has also set custom duties and commercial profits on the import of cars with the cooperation of the Ministry of Commerce. However, the cabinet has to make a final decision.

According to the 'Goals and Policies for the Development of the Automobile Industry', from now on, import of automobiles are allowed subject to the payment of tax, customs' duties and commercial profit; however, the value of the imported cars should not exceed the value of exported auto parts and automotives.

Automobile importers need to go by European standards with regards to pollution, quality, fuel consumption, and safety standards. The presale of these automobiles is not allowed.

One of the amendments made to the 'Goals and Policies for the Development of the Automobile Industry' was a decrease in the tariffs for the import of automobiles, representing a 75% drop compared to the duties set before, IRNA reported.

The decree for the import of cars states that automobile importers will have to pay 220% in duties for the import of a car valued at Rls.44 million ($5,000) and 225% for the import of a car amounting to Rls.66 million ($8,200).

The car importers will have to pay 270% in taxes and tariffs for the import of a Rls.132 million ($16,000) automobile and for any car above this figure, 25% will be added for every additional Rls.22 million ($2,750).

Analysts believe that the new decree will avoid sharp fluctuations in the price of automobiles in the short run. Average annual export of auto parts and automotive in the country amounts to $40 to $60 million. It is projected that the import of automobiles will reach this figure. This amount is equal to the export of 5,000 to 10,000 automobiles per year