Iran Parliament Under Fire for FTZ Investor Unfriendly Move

The Iranian Parliament has recently decided that businesses located in the country’s free trade zones should pay value-added tax. 
Secretary of the High Council of Free Trade Zones and Special Economic Areas Saeed Mohammad says the measure will scare away investors from Iran’s FTZ.
“Over the past few years, we have experienced capital flight to Turkey and now the UAE. The recent decision made by the parliament is harming economic activity in our FTZs,” Mohammad was quoted as saying by ILNA.
The parliament, he added, has put an end to almost all the advantages of Iran’s free trade zones.
“The parliament is not cooperating in granting customs tariff exemptions to businesses operating in FTZs. This is while our neighboring and regional countries are offering export incentives, tax reliefs and exemptions in FTZs and special economic zones. Some countries offer tax exemptions of around 30 years and in the UAE it even goes up to 50 years.”