Government counterproductive measures

Government counterproductive measures

Government / Chief Executive Officer of an Industrial City: Law Enforcement Bypasses Law
The head of the Abbas Abad industrial town’s board of directors outlined the government’s anti-reproductive measures and said: “The government has enacted many laws in support of production, but bypasses law enforcement under the pretext of breaking the law.”

Sayed Sajjad Hashemi, chairman of the Abbas Abad Industrial City Board of Directors, said that 92 percent of the units located in the industrial settlements are generally medium and small units. We also make optimum use of the production boom year, but unfortunately, numerous problems have made it difficult to operate these production units every day.

“The business environment is by no means the same as the big one, but the law is the same for the two units, while the conditions and problems for the small industries are the same,” he said. And the big industries are very different.

Abbas Abad Industrial City’s board of directors, complaining that tax breaks have not yet been implemented, said: “If the legislator sets up a law to protect small industries, why doesn’t the lawmaker look for new excuses for not enforcing the law?” Producers with these tax incentives are willing to attend industrial settlements, but law enforcers are reluctant to apply these tax exemptions.

“Our only expectation is that we all act in accordance with the rule of law, both our government and the 1360 industrial units of Abbas Abad Industrial Estate are now tax-exempt and the rest have been excluded,” Hashemi added. Why shouldn’t the law enforcer give an excuse.

To further explain this issue, he said: Before a manufacturing unit wants to settle in industrial towns, it must refer to the tax agency and provide statistics on its machinery and equipment to carry out an audit, based on the same. Property, personnel and equipment are subject to tax exemptions. But the question is, why not tax exemptions when a unit is looking to upgrade its product or increase staff and purchase new machinery? Unless the job of refurbishing machinery is given priority in manufacturing work to eventually improve the product. But why are law enforcers making excuses and not applying tax exemptions to producers in industrial estates?

Abbas Abad Industrial City’s board of directors emphasized that the only expectation for us to move around the law was that the subsidy targeting law would allocate 30 percent of its resources to production, but why Failed to execute theme? The 5-year value-added tax law was to be put to the test, as this year is the tenth year of its implementation and there is no news of a correction. We are concerned about these issues and the production units are also dealing with these issues.

Hashmi said: According to Article 158 of the Fifth Development Plan Act, production and energy requirements would have to be met, but today, when a production unit with 50 staff wants to operate, it has to spend 400 million to buy 300 million tomans, which is in the process. Production is not good.

He pointed to the payment of bank facilities to production units and added: “It is a matter of lending to production units, but with 18% interest, which comes down to 23% with outlay costs, which production unit can work?” When a generating unit hardly receives a loan, it must repay the loan 30 days after receiving the loan, while the process of using the loan in the generating unit takes about 6 months, typically taking 6 months to produce the unit. And then be able to repay it.

Farshad Kahriari, General Manager of Financing and Investment of Small Industries and Industrial Estates, announcing that surveys show that 70% of the facilities were large corporations, said that the share of small and medium industries is about 30%. 4% of large manufacturing units have managed to make up 70% of the facilities, and small resources have been paid to small and medium-sized enterprises.

He added: “A manufacturing unit needs three to five years of support to perform its manufacturing activity in the first step. In addition, they need raw materials, accurate information and even markets in their production process.” But most industries are now island-based, with unhealthy competition that adds to their problems. This seems to have to be corrected to suit the manufacturer’s operating conditions.

General Director of Financing and Investment of Small Industries and Industrial Estates Organization added: Last year, 164 trillion USD of working capital was paid to industrial units of the country. Currently, industries in the country require 361 billion tomans of working capital, and in the first few months of this year 15,000 billion tomans of resources have been paid to production units.

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