Chamber of Commerce Member: Excessive Increase in 'Government Demands' Has Broken the Back of Production

A member of Iran's Chamber of Commerce has commented on the '13% increase in government royalties for mines' in the 2024 budget bill, stating that this action will lead to increased issues in the operations of this sector and will break the 'back of production.' Mehrdad Akbariyan, Vice President of the Commission of Mines and Mineral Industries of the Chamber of Commerce, Industries, Mines, and Agriculture of Iran, told ILNA news agency that the continuous and increasing 'government royalties' target the mining and mineral industries, making production harder and more expensive and raising the cost price of products. The head of the Iranian Iron Ore Association added that this '13% increase' in government rights has two main issues: first, this percentage does not align with the profit margins of miners, and second, all mines, regardless of their size, must pay the same amount of government royalties. The approval of sections related to the mandatory increase of 13% in government royalties for mines in the 2024 budget has led to some dissatisfaction among the country's miners. The protesting miners do not consider this level of increase to be 'expert and in line with the current production requirements and the conditions of the domestic and global mineral markets.' The Vice President of the Commission of Mines and Mineral Industries emphasized that the 'excessive increase in government demands' and what the government defines as 'sustainable revenues' have 'broken the back of production.' According to this economic activist, the continuation of this situation will lead to a 'halt in production,' and today, the profit margins of mines have significantly decreased. Despite numerous promises during the presidential election campaign in June 2021 to boost production, reduce inflation, and increase public satisfaction, the government of Ebrahim Raisi has not been able to escape the inflationary recession it is in or return the cost prices of goods in various sectors to pre-ascension levels.