Iran offers long-term tax breaks for Italian car industry investors

Business Materials 25 July 2014 17:50 (UTC +04:00)

Baku, Azerbaijan, July 25

By Umid Niayesh - Trend:

Iran will offer investment incentives for Italian carmakers, if they invest in the country's car industry, senior Iranian official announced.

Deputy industry minister, Valiollah Afkhamirad said that the incentives include long-term tax breaks and visa-free travel, Iran's Mehr news agency reported on July 25.

Afkhamirad made the remarks during a meeting with an Italian trade delegation in Tehran.

He called the Italian carmakers to restore their former position in Iran's car industry, underlining that the country's investment laws offer special privileges for foreign investors in particular in free trade zones.

"Iranian carmakers have provided fertile ground for boosting cooperation with other countries, after the gradual removal of sanctions," Afkhamirad said, adding that Iran and Italy can benefit from constructive cooperation in the automotive field.

He also emphasized that cooperating with Iran, provides opportunity for Italy to access the Central Asian markets.

In an interview with Trend in December ambassador of the Islamic Republic in Italy, Jahanbakhsh Mozaffari said Italy can become Iran's major partner in car manufacturing industry.

Iran's automotive industry has started to revive thanks to suspended western sanctions on the country's carmakers.

Western countries suspended certain sanctions against Iran as the Geneva nuclear deal came into force on January 20. Iran was permitted to import materials for its auto manufacturing sector as a result of the nuclear deal implementation, which has led to sharp increase in the country's auto exports in recent months.

Iran exported 10,744 sedans during the last Iranian fiscal year (ended on March 20, 2014), with some 4,231 of that amount only exported in the latest Iranian month.

The country exported $27 million of sedan cars only in the last calendar month which is even more than half of the total yearly export value.

Iran produced 655,551cars in the first eleven months of last fiscal year.

The country produced 989,110 cars in 2012, which made it Asia's eighth largest car manufacturer. Iran's automobile output faced a 40 percent decrease in 2012 due to sanctions. The country was Asia's 5th largest car manufacturer in 2011, with a total output of 1,648,505.