The Ministry of Roads and Urban Development’s proposal for a 2% rise in taxes on road transportation of goods from the current 3% to 5% to boost rail transit will hit production hard, the head of Iran Chamber of Cooperatives’ Specialized Commissions said.
“Unfortunately, the Economic Council of the government has approved the ministry’s proposal and will finalize the decision next week,” Reza Vafaei Yeganeh was also quoted as saying by Mehr News Agency.
Noting that one of the sectors that will bear the brunt of higher road transit duties is agriculture, Yeganeh said producers will have to bear higher costs, as most agricultural commodities are produced in villages with no railroad access.
“The rise in duties will work to the disadvantage of transport and logistics companies due to a possible decline in demand for their services,” he concluded.
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