Economy, Domestic Economy

High VAT Blamed for Faltering Exports

High VAT Blamed for Faltering ExportsHigh VAT Blamed for Faltering Exports

The slowdown in exports is partly to blame on the imposition of 9% Value Added Tax on exported commodities, whereas in other countries the rate is at 3-4%, says the head of Tax, Labor and Social Welfare Commission of Iran Chamber of Commerce, Industries, Mines and Agriculture. According to Mahmoud Tolaie, other reasons behind the declining exports include global commodity prices as well as regional instability, ISNA reported. Latest figures released by the Iran Customs Administration show non-oil exports, including gas condensates (17% of total exports), petrochemicals (35%) and other products (48%), stood at $29.63 billion during the eight months ending November 21, indicating a 10.48% drop compared with the similar period of last year. China, Iraq, the UAE, India and Afghanistan were Iran’s main export destinations.