The Iranian National Tax Administration has released the list of products that are subject to the new environmental tax.
According to Mohammad Masihi, a senior official with INTA, the budget law of the current fiscal year (March 2020-21) has envisioned a 0.2% tax on domestically manufactured paint, coating, primer, tires, tubes, plastic and electronic toys, plastic containers, polyethylene terephthalate and melamine.
Imports of the above-mentioned products will be subject to a 0.5% tax, IRNA reported.
Locally-produced light bulbs, except for SMD/LED, will be subject to a 0.3% tax, while a 0.5% tax will be levied on their imported counterparts.
A 0.3% tax will be levied on domestically manufactured computers, audiovisual equipment and cellphones, as well as linoleum, cellophane and nylon. Importers of these products need to pay a 0.5% tax.
Masihi said producers and importers of these products may refer to Evat.ir, INTA’s value added tax website, and fill out the required forms and pay their taxes.
Environmental tax, also known as green tax, pollution tax or eco-tax, refers to a wide range of legislative charges on businesses and private individuals, is aimed at reducing practices that harm the environment.
There are many forms of environmental tax, some of which penalize those who emit harmful chemicals in the air and some of which reward those who employ environmentally-friendly practices.
Green taxes give legislators and policymakers a powerful tool for environmental protection that supplements existing regulatory strategies. While regulatory mechanisms are used by the government to lessen environmental damage by restricting or banning certain products and activities, green taxes seek to achieve the same goals by awarding economic incentives.
The popularity of this approach to environmental problems has led many European nations to enact green taxes in recent reforms.
