Iran Science-Based Companies Improving

Sales from science-based companies doubled during the last fiscal year (ended March 20) and reached 200 billion rials ($5 million) compared to the 100 billion rials ($2.5 million) in the preceding years.

The number is expected to reach 2 trillion rials ($50 million) over the next three years with more companies coming under the science-based category, Mehr News Agency reported.

After President Hassan Rouhani took office in 2013, the sector witnessed significant growth with the Vice-Presidential Office for Science and Technology offering incentives, tax and import tariff  exemptions to companies in the field.

The Islamic Republic Customs Administration also recognized 26 science-based companies as “certified economic organizations”.  Customs clearance of goods imported by these firms take less time and they pay 50% less customs’ charges.

Moreover, several science-based firms were put on custom exemption list on the condition that the imported goods are used for production within one year after entering the country.

The Vice Presidential Office for Science and Technology also reduced lending rates for science-based companies to 9% from 11%.

It also helped the companies in creating six holdings companies. Several firms active in the same field, namely medical or laboratory equipment, herbal medicine or aerospace industry — were merged to create one entity representing them in the international market.

The government also assisted the companies in creating credit lines to facilitate their international financial transactions.

In 2016, the Ministry of Communications and Information Technology set up a “science corridor” formally called the Center for Information and Communications Technology in Tehran and Alborz provinces.