Production is disrupted

Production is disrupted
  • 2020-10-19
  • .
President of the Export Confederation of Iran: The head of the Tax Affairs Organization, based on a previous decree, has instructed the relevant organizations to return 80% to the exporters, but unfortunately, despite the emphasis of the head of the Tax Affairs Organization on the implementation of his previous instructions, unfortunately the tax organizations They do not pay attention and do not execute.

According to the International Iranian Stone Exhibition, Mohammad Lahouti stated about the VAT refund of exporters: After the currency decisions, which were issued in 1397, the law on VAT refund of exporters was changed. Prior to that, the refund was one month after the export, which, subject to the government's proposal and parliamentary approvals, was conditional on the return of the currency from the years.

He continued: "There was a problem of refunding the value added tax of exporters in the past, but with its conditionality, it intensified and practically faced exporters with numerous problems, blocking and freezing their financial resources." Because it takes about four months for exporters to return the currency, one month is added to the VAT refund period, which means that in practice the time seen in the law is one month to five months.

Lahouti added: "But the problem is that the Tax Affairs Organization does not have online access to the foreign exchange obligations of exporters in the Central Bank system, and the Central Bank must provide these CDs to the Tax Affairs Organization as the amount of foreign exchange obligations." The same is true of performance tax and VAT.

He added: ‌ Since sending information is time consuming, the central bank provided this information once every three months. With continuous follow-up, it was decided that the Central Bank would provide these CDs to the tax authorities every month. The Tax Affairs Organization also promised to return them after 15 days, but unfortunately, it has extended the processing of the books to such an extent that Part of the VAT return of 1397 remains for exporters.

Lahouti added: "This is while even the head of the Tax Affairs Organization has ordered the relevant organizations to return 80% to the exporters based on the previous decree, but unfortunately, despite the emphasis of the head of the Tax Affairs Organization on the implementation of his previous instructions, the tax organizations They do not pay attention to this important issue and do not implement it.

The head of the Export Confederation of Iran said about the impact of this issue on exporters: ‌ The performance of exporters has been affected by this issue. This is because sometimes the fulfillment of foreign exchange obligations is after the announcement dates of the Central Bank or there are problems in entering the system and has caused the Tax Affairs Organization to issue very heavy identification cards for exporters, which completely disrupt production and exports instead of removing barriers and leaps in production. has done.

He reminded: on average, about 1500 billion Tomans of VAT is paid annually by exporters, which must be refunded, and previously, according to the agreements made, 80% was paid to the exporter on account until the consideration. But at present, a large number of exporters' sources have not been returned to the Tax Affairs Organization since 1397.

A member of the Foreign Exchange Committee of the Chamber of Commerce pointed out: 9% of the cost price of goods is value added tax, if this number is not refunded in time and according to the terms of currency return takes about a year, and if we assume 4 times a year capital ‌ When an exporter is in circulation, approximately 36% of his resources are deducted from corporate resources as value added tax.

Lahouti pointed out: "Therefore, the faster the refund of this tax is done, the exporter can use it in production." As it gets slower, like now that exporters have not been able to get this money since 1397, they have not received large amounts of working capital and are forced to use interest-bearing banking resources or reduce production.

* ILNA