Thursday, September 28, 2006

Isn't that nice?

The minister of finance, Ziad Fariz, is insisting that the raising of licensing fees for large cars is to promote the use of more fuel efficient cars, and not to collect more money.

I wonder if it occurred to him to lower the licensing fees for more fuel efficient cars.

Just a thought.


At 5:49 PM, Anonymous Anonymous said...

Ha ha ha. May it did, but he was sure to chase such horrific thoughts promptly away!

At 7:32 PM, Anonymous Anonymous said...

If the registration fees were equal for both types of cars before, then yeah this will result in an increase in revenue for the treasury.

But if the registration fees were different, then that is not necessarily true, because the decreased number of big car registrations will not be compensated just by an equal increase in the number of regisrations of smaller cars.

So it depends.

At 11:59 PM, Blogger Dar said...

Sa7 wallah , bs thats if and only if they really wanted that !!


At 7:30 PM, Anonymous Anonymous said...

I get to know you better with every post: you obviously are not an economist.

If you lower fees for small cars this does not necessarily reduce the number of large cars. In fact, it is even possible that this would result in an increase.

If I am to purchase two cars and I have a limited budget, once you reduce the fee on small cars I have the ability to pay a larger fee for my second car. It is possible.

As Winnie the Pooh likes to say while knocking his head, "think, think, think..."

At 8:07 PM, Blogger Khalaf said...

Salma: Welcome to my blog!

Hamzeh: But the whole point is not economic, as the minister insists. He wants people to drive smaller cars.

Dar: Welcome!

Anon: You are right. I am not an economist. Of course, somebody who owns a JD 25000 car will not sell it because he has to pay an extra JD 25 per year, so the whole premise is stupid.

At 12:57 AM, Blogger Oula said...

they took a decision lat year to unify customs on big cars and small cars( of course engine size by ccs) which made the prices of small cars soar and those of big cars decrease! lets talk about "country policy" vs. every-minister-comes-with-his-own-and-according-to-his-mood- policy!

At 5:51 PM, Blogger Khalaf said...

Oula: welcome to my blog. Of course, if they were serious about encouraging smaller cars, they would go back to the tarrif structure that existsed before. Obviously, they are not, as indicated by a number of lines of evidence.


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