Why Does a Car Import Tax Cost More

January 27, 2012

If you plan to purchase a vehicle in many parts of the world, you'll have to be prepared to pay a hefty car import tax if you bring that vehicle in from another country or region. Still, each country has its own rules for car import taxes, and these are dependent upon a number of factors. What further complicates the issue is that one single country may have different rules depending upon the source country for the vehicle. A UK car import tax may be different from an Australia car import tax, even if the two vehicles are going to the same destination country. Many people wonder exactly how much money they'll have to pay in import taxes and why these import taxes cost a good deal of money. In many situations, the import tax on a car may be more than the standard tax you'll have to pay on the car in your own country. It may even be comparable to the cost of the vehicle.

Factors that Contribute to the Car Import Tax

There are a number of different things that will contribute to the cost of the car import tax. Among these are any tariffs or tax regulations that exist between the two countries in question. Any taxes requested by intermediary countries or locations where the car must travel through on its way to a destination, and more. Countries generally tax imported goods to help their own economies to survive. By purchasing a foreign-made car, you take business away from your own country. Because different countries have vastly varied tax structures, the exact amount of money you'll have to pay on the import tax for your vehicle depends upon the car.

Why Import Tax Costs More

There are several different factors that contribute to making car import tax as high as it is in certain locations. Many of these factors have to do with governmental relationships between countries. These relationships are reflected for individuals in those countries in the form of taxed items and tariffs. Generally speaking, if a country is not on good trading terms with another country, you'll likely have to pay for taxes from both countries to move a car or a comparable item from one place to the other.

You'll generally have to pay both an exit and an entrance tax. You'll pay money to both the country of origin and the country of destination. This further contributes to the overall cost of the import tax for your car.

It is for this reason that many people consider purchasing locally made cars before buying imported vehicles. If you have any other questions about car import taxes, or if you're curious to see how much money you'll be charged for a particular vehicle, speak with the driving authorities in your area for additional information, tax forms and advice.

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