MUSCAT: Prices of imported second-hand vehicles are expected to rise as the Royal Oman Police (ROP) has imposed higher custom duties on such vehicles from May 1, 2015.
As per the new rule, buyers have to pay customs duties of up to 10 percent of the vehicle price.
“The ROP has issued a reference directory for the prices of vehicles being imported,” said a reliable source.
“The directory includes the prices of vehicles manufactured between 2000 and 2010,” the source added.
Customs officers will no longer be allowed to make an estimate of the price of imported vehicles as was the case before, he added.
The rule had been made active since May 1, 2015.
There is a huge demand from buyers in Oman for used vehicles, especially cars from neighbouring places such as Dubai.
In fact, it has been reported that individual buyers purchase cars in bulk for resale in the Omani market.
Ahmed Al Hooti, an Oman Chamber of Commerce and Industry (OCCI) member told the Times of Oman that the ROP is on the right track.
“The used vehicle market had become quite a mess recently,” said Al Hooti.
He added that such laws would definitely regulate the market and put the brakes on individual unlicenced sellers who have stormed the market in the last ten years.
“Now the prices will almost be the same. There will not be much difference between buying used vehicles in Oman or outside,” said Al Hooti.
Customs officers used to be very generous with individuals importing vehicles since there was no rule in place earlier, he added.
“Those who wish to make a business of this should be ready to pay the customs duties that will go into the state coffers,” he explained.
Ali Al Bahri, who works in a used vehicle market in Oman, welcomed the rule and said it would revive the local market.
“I feel motorists will soon realise that it is not worth making a trip outside the country to buy a used vehicle,” said Al Bahri, adding that it would also stem the flow of imported second-hand vehicles into the Sultanate.
However, Hussein Al Rahbi, a used vehicle seller was quite upset by the new rule.
“This will increase the price of an imported vehicle and our profit margins will drop drastically,” he complained.
“The prices will go up as buyers will realise that it is not worth importing a used vehicle,” added Al Rahbi.
Interestingly, the National Centre of Statistics and Information revealed that the number of new vehicles registered in Oman, which included imported vehicles and those that had their licence plate numbers changed, declined by 19.7 per cent by the end of the first quarter of 2015.
In March 2015, 26,418 vehicles were registered as compared to 32,904 during the same period in 2014.
According to NCSI, registered private vehicles declined by 28.2 per cent to 18,383, as compared to 25,612 in March 2014.
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