A Member of Iran's Chamber of Commerce: Free Trade Zones Are Approaching Their Finish Line

A member of Iran's Chamber of Commerce criticized the laws that have driven away foreign investors, stating that the country's free trade zones are nearing a 'finish line.' The website 'Econogar,' active in covering private sector news, quoted Mohammad Sadegh Mobarhan on Thursday, April 9, highlighting the establishment of customs and the removal of tax exemptions in free trade zones as obstacles for investors. According to this economic activist, the approach of free trade zones is based on attracting foreign investment through incentive policies and outside the regulations of the mainland. However, Mobarhan stated that the government intends to collect a tax of 15 trillion tomans from free trade zones without considering the impact of the removal of incentives on investor presence. The executive secretary of the Coordination and Cooperation Council of Economic Activists in Free Trade Zones emphasized that the thirteenth government does not have a favorable view of private sector organizations, and the extension of the value-added tax law in free trade zones in 1400 was also carried out by Ehsan Khandozi, the current Minister of Economy. Several economists consider attracting foreign investment as Iran's salvation, believing that oil and gas revenues are insufficient for the country's development. Mehdi Karbasian, Deputy Minister of Industry in Hassan Rouhani's government, reported on April 6, in an interview with the 'Khabar Online' website, that investment in Iran has been 'below zero' over the past decade. He criticized the 'shadow of politics over the economy,' describing the decision-making of politicians instead of economists in Iran as concerning. This economist also identified sanctions as Iran's biggest problem, stating that solving this issue requires 'bold decisions' in foreign policy. Following Donald Trump's presidency in the United States and the country's withdrawal from the nuclear agreement with Iran in 1397, Washington imposed heavy sanctions on Tehran. The newspaper 'Donya-e-Eqtesad' reported on March 8, 1402, that sanctions have caused an 'increase in risk and uncertainty' in Iran's economy and are among the main factors reducing the willingness to invest in the production sector. The Minister of Roads reacted to the import of workers and housing technology from China, stating that they are seeking to attract foreign investment. The petrochemical sector requires an annual investment of eight billion dollars; investors have withdrawn due to financing problems. Iran's share of global tourism revenue is one percent; Iranians are boosting tourism in neighboring countries. A different perspective on the destruction of Lake Urmia; rooted in 'poor investment' and 'government interference.'