Price of Imported Vehicles Could Double

Monday, 14 March, 2022.

North Cyprus News - Hyundai Cars The cost of new vehicles could double once existing stocks have been sold off, some dealers have said, Yeniduzen reported.

Blaming the influence of the pandemic which has affected production and the motor trade worldwide, dealers say that freight costs have multiplied since the outbreak.

Speaking to Yeniduzen, dealers said that the government should adjust its tax thresholds because it collects around 50 percent of the cost of a new import.

They noted that the import of new vehicles had virtually stopped after the pandemic. And also pointed out that the people’s purchasing power has been eroded because of the depreciation of the Turkish Lira.  “When the stock in the country is depleted, the prices of imported vehicles will increase by at least £2,000 thousand pounds, and it will be very difficult for citizens to own a new vehicle”. 

According to some dealers, importing saloon cars from Japan to North Cyprus has become almost impossible. Before the pandemic, importing a vehicle from Japan to the country cost £3,000. That price has more than doubled to £7,000. After the pandemic it now costs between £9,,000 and £10,000 to import a Japanese vehicle.

The increase in freight charges, taxes and customs charges are the main reasons for the increase in the cost of new vehicles, they said.

They provided a breakdown of the cost of importing new cars from abroad as follows: 

Customs: 10%, Shipping Fee: Around £2,500 (if the car comes from Japan) and around £700 (if the car comes from the UK) 

Harbour Fees: 4.4%, Security Forces: 2.5%, Price Stabilisation Fund: 20%, Withholding Tax: 4%, Vehicle Registration Fee and Navigation: 6%, VAT: 20%.

Thus showing that half the cost of the import goes to the government in taxes.

Yeniduzen

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