This year, 300 thousand tons will be added to the production capacity of domestic packaging paper

According to IRNA, Parvin Nabati of the Ministry of Industry, Mine, and Trade stated, "A remarkable investment has been made in the field of liner and fluting (packaging paper) in the country for recent several years especially after Joint Comprehensive Plan of Action (JCPOA).

She added, "Around 300 thousand tons of new production capacity was created in 2016. In addition, at least another 300 thousand tons will be added to the production capacity of packaging paper with updated world technology."

The official said, "There is a rising trend in the consumption of packaging paper and cardboard in the world. The production and consumption of packaging paper and cardboard was around 151 million tons in 2000 which increased to 230 million tons in 2015."

The growth of around 21% in producing liner and fluting paper last year

Referring to the growth of around 21% in producing liner and fluting paper based on the statistical population at the Ministry of Industry, Mine, and Trade, the Chemical and Cellulose director general said, "The volume of the importing this product faced a decrease of 40% during the same period the main reason of which was the exploitation of the new manufacturing units; The production condition will be much better by launching new plants this year."

Considering over 90% of paper produced in the sector of packaging paper as waste paper, Nabati said, "We had a growth of around 2% in producing duplex cardboard in 2016. We will experience a remarkable growth in this field in the next years due to the protective contexts created in this industry."

The VAT amendment bill to protect domestic producers

Mentioning print paper, writing paper, and newsprint as one of the problems of paper and cardboard industries, she continued, "The cost price of these kinds of domestic paper cannot compete with imported papers due to some decisions one of the most important of which is the exemption of imported print paper, writing paper, and newsprint to pay 9% VAT, while the domestic producers should pay the VAT for raw materials including bagasse, wood, chemicals, and the consumed energy which has brought about an unequal competition between the domestic producers and importers."

Nabati, referring to the VAT amendment bill submitted by government to parliament as the end of last winter, stated, "In the bill, imported pulp, waste paper, and timber are exempted from VAT which will help the domestic wood and paper industries very much. However, protective measures should be taken by the parliament and the Ministry of Islamic Culture and Guidance in the fields of VAT and tariffs for domestic print paper, writing paper, and newsprint." 

The exports of 10 thousand tons of health paper (tissues) last year

Referring to the rising trend of health paper (tissues) consumption in the world, she said, "The consumption of this kind of paper was around 21 million tons in 2000 which was increased to 33 million tons in 2015. Moreover, its domestic production was around 50 thousand tons in 2013; the ratio of production to consumption was 37% and its consumption per capita was 4.1 Kg. In 2016, the ratio of production to consumption was approximately 100% and the consumption per capita was 9.1 Kg." 

The official said, "In the same year, around 10 thousand tons of tissues were exported, and the expansion of its exports is on the agenda of the Ministry of Industry, Mine, and Trade.

The supportive measures of the Ministry of Industry, Mine, and Trade

Finally, the Chemical and Cellulose director general of the Ministry of Industry, Mine, and Trade described the measures which have been taken in the recent years to supply raw materials for the protection of domestic production of paper and cardboard admirable."

She said, "Imposing 100% customs export duties for waste paper as the export duty on raw materials in order to turn it into products with more surplus value inside the country and the insertion of pulp, waste paper, timbers in the list of imported items which are exempted from VAT   in the bill submitted by the government to the parliament in order to make domestically produced paper more competitive include among the most important measures taken."

Nabati continued, "Furthermore, other remarkable measures were to coordinate with the Forestry, Rangeland, and Watershed Organization for the expansion of planting trees for the timbers required to make different kinds of paper and compact wood sheets and to follow up the Cabinet of Ministers resolution to facilitate the imports of wood. The interest to invest in the industry with the target of supplying the country requirements and exporting will be improved by implanting these two measures." 

According to IRNA, anomalous harvest of forests and the destruction of environment has made timber farming a safe alternative to supply this product."

Hyrcanian forests in the north of Iran are the main source of supplying a part of required wood for the country's industries. These forests cover 1.9 million hectares, and around 600 thousand cubic meters of wood are annually harvested.