According to the International Iranian Stone Exhibition, the main purpose of granting tax exemptions and incentives in different countries is to promote investment and support the production process.

Using this tool, the policymaker can direct investments towards the expected goals, while the situation and process of tax exemption in Iran has a different and different process from other countries, and the owners of mines and industries properly benefit from the exemptions imposed in the field of export. Did not win; Of course, some miners and producers of mineral raw materials have different views.

Lawmakers believe that if tax exemptions are eliminated, tax incentives or value-added tax credit can be substituted. Proponents of the plan also believe that in this way, the profiteering and extravagance of some people can be prevented and this high-risk area can flourish to some extent. However, there are objections in this regard, and some economics and mining experts believe that the government is only fully concerned in collecting taxes and does not follow the proper procedure when paying incentives or tax credit, and producers and investors should not be happy about this.

Change in tax collection

Recently, during the review of the budget of 1400, the spokesman of the Joint Commission announced the change in the tax collection process and said: the revenues from the export of metallic and non-metallic minerals, oil, gas and crude and semi-crude petrochemicals are taxed.

Rahim Zare, while stating this, added: with the aim of preventing the sale of raw materials and supporting domestic production, revenues from the export of metallic and non-metallic minerals, oil, gas and crude and semi-crude petrochemicals will be subject to tax. Of course, the export of the product is not subject to taxes and duties.

Zare pointed out: According to the economic growth that the government has predicted for next year, with the exit of the corona, revenues from value added tax will increase from 81 thousand billion tomans to 113 thousand billion tomans.

Increase national income

Some experts believe that widespread and unnecessary tax exemptions and incentives have become a factor for high-income tax evasion and discrimination in society, the elimination and organization of which, in addition to increasing national incomes, can reduce the pressure on other taxpayers. It should be borne in mind that tax exemptions and tax evasion are in fact two sides of the same coin, and the consequence of non-access to tax revenues is discrimination and pressure on other taxpayers. The difference between a tax exemption and a tax evasion is that tax evasion is illegal, but a tax exemption is backed by a law.

In this regard, it should be borne in mind that the amount of tax exemptions and incentives is always determined in accordance with the macroeconomic policies of countries and according to written plans, which is temporary and has a limited period of time. In recent years in Iran, extensive tax exemptions have been granted in agriculture, free zones, charities, knowledge-based companies, various economic sectors, culture, etc., which have not played a positive role in improving economic, cultural, social and other activities. In fact, they have become a tool for tax evasion and the spread of tax discrimination.

Tax reforms for the benefit or to the detriment of the mine

Reference agencies have not yet announced the exact amount of tax exemptions, but it is said that 40% of the country's economy enjoys tax exemptions. According to some unofficial estimates, the increase in government revenues if unnecessary tax breaks are eliminated would be about 20% of current tax revenues. Organizing tax exemptions and incentives due to their large volume is one of the most important issues in the field of tax reform and studies show the fact that the number, volume and depth of exemptions in the country's tax system at a much higher level than most countries. contract.

Economists believe that the effectiveness of most of these exemptions on production and investment or the encouragement of activities is questionable, and studies have shown that these exemptions and incentives do not have any positive effect on economic variables. Tax exemptions and incentives are unique in our country's tax system, and perhaps in none of the advanced tax systems, tax exemptions and incentives that exist in our country's tax system today are similar, while many of these tax incentives and exemptions A grant is inefficient for the country's economy and has the aspect of ostentation or slogan.

Economic shock to mining areas

Mohammad Reza Shahidi, an economist and former member of the Tehran Chamber of Commerce, referring to the elimination of tax exemptions in some areas and the shock of the market and producers, said: "The plan to eliminate tax exemptions from exports can be considered in two ways, although it has not yet become law." He predicted that if export tax exemptions were abolished, exports would be greatly reduced and, on the other hand, government foreign exchange earnings would decline. Therefore, we must pay enough attention to this issue and examine all its dimensions.

The former member of the Tehran Chamber of Commerce further explained: The issue is that the mines are part of Anfal and belong to the general public. Although it is said that the mine document is in the name of a specific person, it should be borne in mind that the mine has a public affiliation. Therefore, I believe that the ministry should investigate both sides of the issue. A number of directors and shareholders may benefit from this law, but this issue needs to be addressed in detail.

He added: "Export tax will have a huge impact on the economy and mining and production, so it must be considered with great sensitivity." Members of parliament must have a big view. They should also consider that while there is no problem or obstacle to the export of agricultural or mineral products in the country, when an area that has not paid taxes for many years is suddenly forced by a law to pay heavy taxes, there is enough confidence to Investment and planning for the coming years in these areas will be lost.

Possible consequences of enacting a law

Shahidi said: the removal of tax exemptions from exports has many consequences and we must carefully examine these consequences and then make a general and decisive decision on this issue. Referring to the issue of export incentives, he explained: "Experience has shown that taxes and duties are paid in cash, but incentives are always paid on credit." When they provided export incentives for some exporters, only some of them were able to take advantage of these designated incentives; In a way, several years later they were able to receive some of those tax incentives. Usually, when they want to receive a tax from the private and manufacturing sector, they receive it with full diligence and speed, but when they want to provide incentives to producers or exporters, it takes several years for that budget and financial resources to be allocated to individuals.

Miners are hurting!

Shahidi pointed out that industries and mines will suffer more with the enactment of this law, and explained: the prices of metals and minerals should be determined according to world prices, and the prices of products in this field are quite clear; Therefore, if a person intends to export products and minerals, he can not add export costs and taxes to his products and then export his product. It is not possible to do such a thing in the field of mineral products.

A former member of the Tehran Chamber of Commerce acknowledged the sale of steel and mineral products in the country: The discussion of selling mineral products such as steel in the country is completely different from exports; For example, when a person wants to sell his steel produced in the country, he calculates the value added tax and then sells the product, but there is no such possibility in the field of export.

He added: "In export markets, the producer can not increase the price of his product under the pretext of paying taxes and sell his product at a price higher than the internationally set amount."

Sales of products above the global rate cannot be increased due to taxes, so the exporter's profit margin will be reduced and this will have an effect. Shahidi explained: the enactment of this law may, on the one hand, have an increasing effect on prices and, on the other hand, lead to a decrease in the export of some products.

Tax credit

The economist said about tax credit: "So far, tax credit has not been implemented and operational in any of the areas, and therefore it can not be said that it has a positive or negative effect on the mining sector." Our experience with lawmaking is that what happens on paper is completely different from what is actually seen.

Referring to the tax system, Shahidi emphasized: "All people who work in the field of production and mining are fully acquainted with the definition of tax and know that the tax system means the redistribution of income; This means that income is taken from some people and distributed throughout the community. He added: "When people can transfer that tax to the chain and the next people, the next person will pay it, but in the export market this will not be possible."

Incentives replace exemptions

Saeed Bastani, a member of the 10th term of the Islamic Consultative Assembly, explained about the tax exemptions and the new proposal in the 1400 budget bill: "Any exemption that is imposed creates a problem in the society and because it is difficult to control, it becomes a problem somewhere. In a free economy Usually these exemptions do not exist and the market regulates itself and if something is to be done, incentives are considered.

Referring to the issue of determining tax incentives, he clarified: both exemptions and incentives may lead to the same goal, but in incentives, by doing a job, incentives are determined for the active and productive; That is, after the work is done, a sum is given to the producer or exporter, but in the exemption, the process is reversed.

Bastani added: "There are rent problems in tax exemptions, so I believe that instead of tax exemptions for exporters, we should replace incentives; For example, according to the law, a person who invests in the free zone is exempt from paying taxes for 10 or 20 years, while I believe that this exemption for that person is not a good solution and people invest in a formal way. But if these points are given to that person in the form of incentives (after finishing work), the work process will improve.

Market turmoil

The representative of the tenth term of the Islamic Consultative Assembly stated: We have had tax exemptions for a long time and if we want to remove these exemptions suddenly, there will be market chaos. These exemptions must be transferred to the final section. An incentive can be assigned when the work is completed.

Bastani explained: "We have set tax exemptions for 76 items, which have not had a positive effect on the country's activity and revenue generation."

Closing remarks ...

The system of tax incentives and exemptions in Iran is very complex and covers a wide range of activities, and in addition to its scope, there are other drawbacks to the tax exemption system, such as the non-purposefulness and length of such exemptions. The combination of these objections prevents the legislator from achieving the goals of granting tax exemptions and incentives, and they want to replace the exemptions with incentives or take other measures.