RAMALLAH, Wednesday, October 31, 2018 (WAFA) – The Ministry of Finance denied on Wednesday reports of an increase by 100% in customs on cars, whether new or used, stressing that any change in customs on cars will be decided by the cabinet and not by the finance ministry.

Director General of Customs, Excise and Value Added Tax (VAT) at the Ministry of Finance, Luay Hanash, said in a statement that reports of a 100% increase in customs were not true.

"There is a vision to regulate the car imports sector, whether new or used,” he said. “The General Customs Administration has issued instructions regarding the clearance of new and used cars which stipulate the importer’s compliance with the existing customs law.”

Custom duties on cars are 50% for motor vehicles with engine below 2000 cc and 75% for motor vehicles above that.

"There has been no decision to increase customs on cars," Hanash said. "The decision to increase customs is the responsibility of the Council of Ministers and not the Ministry of Finance."

Hanash said the meeting with the car importers was to discuss the situation of the importers, “which is a meeting regularly held at the end of each year where the customs department at this time of each year specify mechanisms and ratios of depletion and value of imported vehicles," said Hanash.

He added: "Our instructions to car importers are to comply with the applicable customs law without any change, which stipulates the obligation to declare the value of vehicles imported from abroad, including all costs at their real price, and to collect the duties and taxes due for vehicles according to the Customs and Excise Law in force.”

M.K.