Iran’s Guardian Council, a constitutional body that reviews parliament’s legislation, has approved a law that reduces customs duties on imports of raw materials, parts and machinery needed by Iran’s manufacturing sector.
Guardian Council spokesman Hadi Tahan Nazif said in a tweet on Tuesday that the body had approved a parliament bill ratified earlier this month that will reduce tariffs from 4% to 1%. on raw materials, semi-finished products, parts, machinery and equipment.
Tahan Nazif said the legislation was not considered by the Council to be contrary to the Iranian Constitution and religious principles.
He said the administrative government had already reduced an excise tax it collects on imports of the same products.
The approval could be a major breakthrough for Iranian manufacturers looking to increase production and make their prices more competitive in the market.
Iranian manufacturers have complained in recent months that high costs of importing raw materials and machinery parts have contributed to higher prices for various handicrafts.
Iran’s Ministry of Industry and Trade (MIMT) had asked the government in July to remove or reduce import duties on certain equipment and parts needed by manufacturers in the country.
The ministry said at the time that the high tariffs had also led to an increase in the smuggling of raw materials across Iranian borders.