Give mining activists a chance

Give mining activists a chance
  • 2020-08-26
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Chairman of the Mines and Mining Industries Commission of the Iranian Chamber of Commerce: I suggest that a person who has not created added value should not pay taxes and his added value should be calculated whenever his activity is put into operation.

According to the International Iranian Stone Exhibition, there is no doubt that the country should be governed by taxes and distance itself from oil revenues; But how we do taxation so that both taxes are levied and production is booming is a matter that needs to be addressed.

In today's mining sector, tax increases can make production difficult. If the government uses tax tools in policy-making in an environment where the country is in economic trouble and there is no improvement in the conditions of producers, although the increased tax will be collected, it will not be like this in the following years and producers will not be able to survive.

If we look at the tax situation in developed countries, we find that developed countries sometimes increase production prosperity by reducing tax rates. The largest share in the tax is related to the production sector, which of course has a lot of risk and vulnerability.

Thus, it seems that one of the things that should be done in Iran is to collect less taxes from the production sector and especially from mining activists. When a person invests in the mining sector until the day his work is put into operation, he is constantly buying machinery, technical engineering services and paying added value. Given the high cost of mining, we need to value this area more. In the field of value added tax, many economic actors are in an unfavorable situation that they can not sell their goods in cash.

In this way, they sell it on credit and sometimes they can not collect their original money, while once every three months they have to pay VAT to the tax system. Although the government has tried and tried to provide facilities to economic actors, especially the mining sector, but these facilities have not been enough for all activists.

I suggest that a person who has not created added value should not pay taxes and his added value should be calculated whenever his activity is put into operation. Unfortunately, added value has engulfed the production chain, while those who are the real producers must be supported. In the year of the leap in production, many pay nine percent VAT, while we must allow the economic operator to invest this amount.

Bahram Shakoori - Chairman of the Mines and Mineral Industries Commission of the Iranian Chamber of Commerce - Samat