The parliament has taken steps to balance prices in the domestic steel market and the export sector regarding the tax exemption for steel production. In a situation where the world market is thirsty for the final products of Iranian steel producers, the market should not be left to competitors by mismanagement. In this regard, the Parliamentary Industries Commission has been working to make reforms. But for now, it’s a little early to see the output of these conversations. It remains to be seen to what extent these measures can be helpful in practice. In the following, we will evaluate this issue. Please be with Artan Press.
*** The entry of the Parliamentary Industry Commission to eliminate the production Tax exemption
The Parliamentary Industries Commission, by monitoring the market and observing the country’s currency bottlenecks, has undertaken new reforms in this field. Referring to the role of large companies in the steel and petrochemical industries in foreign exchange, a member of the parliamentary industry commission announced the approval of a plan in the relevant commission to remove tax exemptions from the beginning of the chain and transfer them to end products.
These measures have been created with the aim of creating wealth and currency in the country’s industry. Usually, countries that face the challenge of international interaction try to facilitate the beginning of the supply chain of the products that lead to production. If domestic production grows and wealth is generated, it means that the circumvention of sanctions has somehow stopped. The main purpose of the sanctions is to reduce GDP so that wealth is not generated. Therefore, all time and grief should be focused on production.
*** The need to pay attention to the mining sector in terms of currency
The mining sector in Iran has long been neglected. Mining is one of the most advantageous sectors of Iranian industry. In terms of resources such as iron ore, coal and copper, Iran is one of the best countries with these gifts that should not be acted upon unplanned. It should be noted that if the production chains are more complete and added value is created, many of these problems in the field of industry will be solved. Along with the steel industry, the sector that produces raw materials is petrochemicals. Significant valuations have been made in this field, but it has never produced with its nominal capacity.
*** Wrong orientation in providing tax exemption for the steel sector
The MP and member of the Industry Commission has stated that in the field of steel, more work has been done on steel ingots, which is an intermediate material, but there are still problems in completing the steel chain. In this regard, the Industries and Mines Commission approved a plan to prevent the sale of crude steel and proceeded to export the final products of this chain. Previously, the problem of the steel industry was the existence of tax exemptions in all parts of the steel chain, even in the export of iron ore. In the approved plan, the tax exemption is to be removed from the initial products of the chain and transferred to the final products of the chain.
*** The problem of selling raw materials and eliminating taxes on raw material sellers in the steel industry
In the current situation, there is both a sale of raw materials and a problem due to the incompleteness of the employment chain, and less added value enters. This was the main comment of the member of the Industry Commission. Raw sales in the Iranian steel industry are very harmful. In this regard, the development and organization of the steel chain and the reform of the mining law are on the agenda of the parliament. The role of large companies in currency exchange, especially in the steel and petrochemical industries, is clear. There are good capacities in this area, but the conditions for the activities of these industries should be facilitated. In addition, efforts are being made to give more powers to the provinces in the field of mining so that each province can take steps towards its own growth.
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