Customs duties rise to lead to growth of car prices in Kazakhstan by 20%

ALMATY. February 25. KAZINFORM /Yelena Ilyinskaya/ Rise in customs duties from 10% up to 30% will immediately lead to the growth of car prices in Kazakhstan by 20% in average. Autodealers and experts of the domestic car market announced it in Almaty yesterday, Kazinform correspondent reports.

According to the experts, car retail as well as other sectors of Kazakhstan economy experiences difficult period. Thus, by the results of 2008 the volume of new cars sale by official dealers has dropped. The total number of the sold cars made 23 573 units. In 2007 this figure made 34 000 units. The main reasons are reduction of the population?s income level, fall in consumer demand, reduction of auto crediting, and prohibition of the country?s authorities on purchase of service transport by state-run organizations. ?In our opinion, increase in import customs duties will be favorable neither for the country?s budget nor for Kazakhstanis. The only car producer in Kazakhstan that specializes in assembly of components will benefit from this. This enterprise enjoys preferential terms of import of aggregates and bulk packs at the rate of 5%-15%. However the domestic car producer experiences hard times too due to fall in consumption and reduction of orders. Import of cars slows down as well. In 2008 Kazakhstan imported 155 221 cars. That is 60.3% less than in 2007. The reasons are the same?, Head of ?Astana Motors? Company Nurlan Smagulov said.