The automotive sector in Lebanon is facing a significant setback since the implementation of the new customs dollar policy, affecting both traders and importers who have a set of demands to allow them to remain in business, as well as citizens who dream of owning a car. For a large segment of Lebanese still receiving salaries in Lebanese pounds, it may take over five years to afford a car due to the astronomical rise in customs fees since the beginning of December.
Eli Qazzi, head of the used car importers, stated, "The automotive sector is one of the most important sectors in the country, with many sectors linked to it; however, the way we are being treated will lead us to bankruptcy, closure, and the emigration of the sector."
Regarding the impact on people and the additional costs to car prices, Qazzi revealed to MTV the new customs fees for cars, which are approximately as follows:
- A car valued at $10,000, considered a poor man's car, will see customs fees rise from 7.5 million to 94 million Lebanese pounds.
- A car valued at $20,000 will see the customs fee increase from 14.5 million to 193 million pounds.
- A car valued at $50,000 will have its customs fee rise from 44 million to 493 million pounds.
- A car valued at $100,000 will see customs fees rise to 990 million pounds.
It is important to note that these prices do not include registration fees, which will also increase according to the customs certificate for each car. For instance, a car that previously cost $1,000 to register will now cost around $1,700.
Qazzi also addressed the issue of the closure of the traffic authority and the halt of operations affecting the sector, leading to a loss in car values, commenting on accusations against the sector by saying, "We do not stockpile cars, nor can we." He explained, "Since the beginning of 2022, we have imported small cars to meet the Lebanese market's need for economical vehicles given the fuel crisis, but unfortunately, the cars arrived amidst the halt of the traffic authority, the absence of a president, and fluctuations in the dollar exchange rate, resulting in cars piling up in showrooms."
Regarding the current state of the sector, Qazzi said, "All we are asking for is a modification of brackets and an amendment to the law because the 2023 budget will rely on the Sayrafa exchange rate. If the law is not amended, the current customs dollar means the end of the sector, and we cannot continue this way."
Qazzi added, "We have agreed with the Prime Minister on organizing matters; we have no issue with the dollar at the rate of 15,000 for customs, but we demand a complete package that supports all sectors simultaneously." He announced that they are awaiting a response to their demands, especially since they sent a letter to the Minister of Finance, which he referred to the Higher Customs Council, particularly since they previously received a promise to include cars shipped before the decision, still at sea, under the old customs rate, a matter that has not been implemented.
