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News: Iran Economy

The Coup De Grace on Iran's Domestic Productions by Rouhani's Government

NCRI - The Council of Ministers of the Iranian regime reduced the tariffs of 8 basic and primary commodities from 5 up to 50 percent.

The terrorist Qods Force News agency wrote: “as the Council of Ministers ratified the law, the rate of different types of white and brown rice was reduced from 32 to 5 percent. Additionally, the rate of butter and meat sheep decreased respectively from 20 and 26 to 5 percent. The reduction in tariffs endangers the production of commodities in Iran. The farmers and ranchers will also incur losses. The tariffs reduction, on the one hand, increases the commercial benefits for merchants and the plunderers affiliated to the regime, and on the other hand, it is in favor of foreign manufacturers of these items.

Rouhani's government provides a pretext for tariffs reduction that it intends to reduce the prices in the market. Nevertheless, this measure absolutely harms domestic producers."

The head of the farmers union referred to the negative impact of tariff cuts of meat sheep on the breeding sector of the country. He stated:"not only are we currently self-sufficient in producing meat but we also export them to other countries. As a result, the tariff reduction on the imported red meat is a sort of paying subsidies to foreign manufacturers. This issue considerably harms the livestock industry of the country."
The member of the Iranian Parliament Committee on Agriculture, Abbas Papizadeh said that the independence of the country in the field of food security will be lost with Rouhani's decision (the sate-run Fars News Agency, 25th of January 2017).

Abbas Papizadeh said that the tariffs reduction on the aforementioned commodities ends the domestic manufacturing. It is actually in favor of importers such as the merchants of the Iranian regime and it also supports the foreign productions.

The head of the union of agricultural products also stated:"the government enactment to reduce tariffs on the imports of agricultural products will increase the imports and we are concerned about the future of Agriculture in Iran."(IRIB 2, January 26th, 2017)

The tariff reductions on the imported agricultural products increase the corruption, rent-seeking and the smuggling of these products.

An Iranian MP on 14th of October 2016 addressed the Minister of Agriculture and said:"apart from smuggling, you import rice into the country twice the need of country's capacity every year. The 400 tons of rice imported into the country has provided benefit to specific people.

Rouhani's decision has caused the uncontrolled import of agricultural products, especially rice with poor quality and in some cases a mixture of rice and plastic.

Rouhani's government has implemented the dirty policy of tariffs reduction on foreign commodities in other fields including textile products as well."

Regarding this matter, the state-run ISNA News Agency writes that Rouhani's government has simultaneously reduced tariffs on the import of clothes and fabrics (ISNA News Agency, 12th December 2016).

As a matter of fact, these are the instances of government measures in destroying the national production as well as the proliferation of unemployment among youths and people. These policies are also in favor of the looters affiliated with the Iranian regime.

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