VAT law in Iran needs to be changed to boost production

Business Materials 30 July 2019 13:40 (UTC +04:00)

Tehran, Iran, July 30


Almost all the authorities in the country have consensus about the law on value added tax, Iran's deputy minister of Industry,Trade and Mining said.

“Iran's leather and footwear industry is an old and well-established industry that earns profits only if the production circle is completed,” Saeed Zarandi said, Trend reports citing ILNA. “The reduction of livestock slaughter last year had a direct impact on the leather industry, so we had to import raw materials from abroad.”

Zarandi noted that every year, Iran exports shoes worth $100 million, and that the shoe industry has high potential. He added that import of the shoes made in Iran can increase, as the industry has a good infrastructure.

Referring to a recent meeting with representatives of private sector on the VAT issue, he said: "Almost all the authorities in the country have agreed that the law on VAT shall be amended to help the industry."

At the meeting, associations and organizations operating in the leather and footwear industry discussed the industry issues, export development strategies and supply of raw materials.

Deputy Minister of Industry, Mining and Trade expressed hope that MPs will approve the proposed changes to the VAT law as soon as possible in favor of the production.