Export incentives do not have a specific output

Export incentives do not have a specific output
  • 2020-04-12
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Chairman of the Export Confederation of Iran: The budget line for export incentives has been considered for almost three years, and unfortunately, despite the fact that its amount is approved by the parliament, less than two percent in one year and none in one year. No amount of this value is achieved. Therefore, exporters no longer trust these packages because in a way it can be called export and to the benefit of others.

According to the International Exhibition of Iranian Stone, Mohammad Lahouti said about the government's support packages for exports: "These support packages are in two parts, the first part of which is from cheap facilities and resources of the National Development Fund and the other part is the incentives." Related to the presence of the offices of commercial companies, attending exhibitions, supporting the payment of part of the cost of transportation or brand registration abroad.

He continued: "What is certain is that in 1397, a package of one thousand and two hundred billion tomans was approved in the incentives section, of which only twenty billion tomans were realized, and last year, based on the resolution of seven hundred and sixty billion tomans." The budget was considered, the first vice president announced the allocation of six hundred and eighty billion tomans to the parliament, but the program and budget organization did not even consider a single rial of resources to provide it.

The head of the Export Confederation of Iran stated that in the low-cost facilities sector in 1397, about one thousand billion tomans were provided by the National Development Fund and one thousand billion tomans at the rate of fourteen and a half percent, and last year about seven hundred billion tomans of facilities by banks. "Despite the fact that in the last two years there has been no budget for this sector in the incentives sector, this year the support package of the Trade Development Organization and the Ministry of Industry has been ordered by the First Vice President," he said. These organizations were formed. Which is currently on the agenda of the Trade Facilitation Organization's Trade Facilitation Committee.

 He continued: "For almost three years, the budget line has been considered for export incentives, and unfortunately, despite the fact that its amount is approved by the parliament, less than two percent in one year and no amount in one year." This amount is not achieved. Therefore, exporters no longer trust these packages because in a way it can be called export and to the liking of others.

Lahouti said the budgets have only been in operation for three years, adding that the government has been recognizing and considering the budget for three years, and has almost no specific output.

Regarding Corona's impact on exports, he said: "All over the world, Corona has shown its impact first on health and then on the economy, and because we are also affected by this disease, unfortunately, many neighboring countries have closed their borders." And.

Lahouti said that Corona's impact on reducing exports in the last two months was inevitable, adding: "According to specific statistics, we had a decrease of at least seventeen percent in exports in March, which will definitely increase in April." However, with the efforts and negotiations, health protocols have been developed between Iran and neighboring countries in order to export goods, so we will gradually see the reopening of some borders.

 "We hope that these protocols will be implemented as soon as possible," he said. "Because in this way, private sector activists in the field of implementation and regulatory bodies have all their concerns, policies and goals to comply with health rules and protocols." To export goods. So that our inaction does not cause concern in the neighboring countries.

Regarding the export situation next year, he said: "Due to unpredictable conditions, it is very difficult to comment on the export situation next year, and according to the director of the World Trade Organization, in the most optimistic case, thirteen percent and in the most pessimistic case." We will reduce exports by more than thirty-two percent.

The head of the Iranian Export Confederation said that Corona's impact on the economy depends on the timing of its containment, and that the longer it lasts, the more effective it will be. We accept and believe that in some goods, such as non-oil goods, if the conditions for exporting goods are met, we can maintain and even increase last year's exports.

* ILNA