Ahmad Sharifi's criticism of expensive money, taxes and insurance
The secretary of the Iranian Stone Association cited the lack of liquidity, high interest rates on banking facilities, complex bureaucracy and lack of government support for tax and insurance units as a major problem in the manufacturing sector.
Ahmad Sharifi stated that the manufacturing sector has never been adequately supported by officials, saying that the main problem of the production units is the expensive money provided by the banks.
He added: "In all countries, the interest of banking facilities for production facilities is one to three percent, but in Iran, manufacturing facilities for banking facilities have to pay eighteen to twenty percent interest."
According to the secretary of the Iranian Stone Association, the high profits of banking facilities deprive Iranian producers of the opportunity to compete with international production units.
Sharifi cited the lack of liquidity as another problem for manufacturing units: Production units should not rely solely on domestic markets and conditions for competition in global markets should be provided to producers.
He cited the complex bureaucracy in ministries and administrative units as an obstacle to improving the conditions of production units, and said: "Despite the fact that there are laws in place to support domestic production and business, production units must go through a number of steps to obtain legal licenses."
Sharifi pointed out that one of the most important challenges of production units is VAT payment. On the other hand, the manufacturer is unable to get it from buyers due to bad economic conditions. So, in practice, it is up to the production units to pay the VAT.
According to the secretary of the Iranian Stone Association, in all countries the first years of production facilities, insurance facilities and tax breaks are considered, but in Iran such facilities are not considered for production units.
* ISNA
