Policy Database

Iran Laws and Policies

Several pieces of legislation and directives contain provisions that directly or indirectly impact the importing, manufacturing and use of EVs, but there is no legislation that specifically deals with them.

The recently-adopted Clean AirAct (2017) mandates various ministries to work together on renewing the urban public transport fleet, including through incentives for hybrid and electric vehicles and electric motorcycles. It also exempts all locally-manufactured EVs from VAT.

The Cabinet of Ministers has requested the Ministry of Industry (MoI) to prepare an action plan for manufacturing and importing EVs. The MoI subsequently introduced a plan for manufacturing EVs that prioritised the public transport fleet, and set a three-phase project for passenger vehicles to be manufactured on new and existing platforms. The MoI also proposed an initiative to offer incentives to manufacturers and consumers of EVs, which is pending adoption by the Cabinet of Ministers.

EV import tariffs – are a significant factor as they are among the few incentives available – they are also set by the Cabinet. The most recent resolution increased the previously low tariffs from 5% to 45-100%.


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