Page 395 - Ministry of Economy - December 2017

12/25/2017 FNC member asks government to place cap on rising car prices ahead of VAT - The National
“Putting a cap for a luxury good contradicts with this
[free economy] principle, and it is not a basic good, like

food.

“The UAE is also committed to certain environmental
standards."

But he said he would consider price controls like that
seen in the rental sector.

He said that prices have fluctuated for a range of
factors.

“Since 2008, there have been changes to the law, with

regards to car specifications, especially in Europe and
Japan, where they took into consideration security and
environmental features, and this led to higher prices,"

he said.

Currency fluctuations also affect prices, as do other

issues.

“For instance, in Saudi Arabia they import a higher
amount of cars than the UAE, and this quantity plays a

big role with regards to pricing," he said.

He also also said car prices have reduced since

August, adding that the UAE market is very competitive
"and we expect even further drops in 2018".

Prices between this region and Europe vary

significantly, with tax and other factors playing a part.

For example, a Toyota Land Cruiser Prado sold in the
UK starts at about Dh180,000, compared to Dh125,000

in the UAE.

However, motoring industry figures said it was difficult

to compare prices between countries in the Middle
East.

Bill Carter, chief systems and innovation officer at

Autodata Middle East, said “to do a price comparison
between the various nations is virtually impossible

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