Iran’s Guardians Council, a constitutional body that vets parliament legislations, has approved a law that allows reducing tariffs on imports of raw material, parts and machinery needed in the Iranian manufacturing sector.
Guardians Council’s spokesman Hadi Tahan Nazif said in a tweet on Tuesday that the body had endorsed a parliament bill ratified earlier this month that will cut from 4% to 1% customs duties on raw material, semi-finished goods, parts, machinery and equipment.
Tahan Nazif said the legislation was not deemed by the Council to be against the Iranian Constitution and religious principles.
He said the administrative government had already reduced an excise tax it charges on imports of the same products.
The approval could be a major breakthrough for Iranian manufacturers seeking to expand their output and make their prices more competitive in the market.
Iranian manufacturers have complained in recent months that heavy costs of importing raw material and machinery parts have contributed to rising prices of various home-made products.
Iran’s ministry of industries and trade (MIMT) had asked the government in July to waive or reduce import tariffs on certain equipment and parts needed by manufacturers in the country.
The ministry said at the time that high tariffs had also led to increased trafficking of raw material across the Iranian borders.