Factories are working with between 20% and 30% of their production capacity

According to Fars News Agency quoting IRIB, Ebrahim Jamili asked for the support of the parliament and the government from the plan offered by the Ministry of Industry, Mine and Trade on modernizing the industries before the end of Iranian year and said, “In the current situation in which the production conditions are not good, we all should think about the national interests and help to support the domestic production of goods together.”

 

The member of the Chamber of Commerce added, “We have to close the way of investment from moving to non-production sector and try to absorb the capital to production.”

 

Jamili, also stating that we should pay attention to the prosperity of market along with production, said, “Firstly, the goods having domestic production should not be imported. Secondly, we must return the boom to the market because when the goods are produced and do not have customers, our factories cannot work with full production capacity which leads to increasing in the cost prices and the decrease their ability to compete with the foreign goods, so that the factories are working with 20% to 30% of their production capacity is not acceptable.”

 

Stating that the 100% Iranian products have mainly mineral basis, he said, “Our factories have to first produce the goods which are economical with full capacity.”

 

The vice chairman of the special commission of supporting national production, continued to talk about the new law on the maximum use of domestic production capacity and said, “The new plan is more complete and does not have the problems of the previous law.”

 

The MP mentioned the advantages of the new plan such as, the ban of registering order for the goods which have similar domestic products, the prohibition of the promotion of the foreign goods which have equivalent domestic products; the new law includes all public, public- private, and governmental entities, and opening of the L/C in that the manufacturer benefits.

 

He said, “In the new plan, the Social Security Organization has been predicted well. Although the plan is not against social security, there have been negative reactions against its article 11 which is on social security and insurance.”

 

On neglecting the incentives for successful manufacturers in the plan, the vice chairman of the special commission of supporting national production said, “In the discussion on value added tax and facilities, there are some items which can be interpreted incentives.”

 

Zare, stating that we should try to decrease the cost price of the products, added, “In the current situation, a producer who manufactures high quality products is successful.”

 

Kiyoumars Froutani, the executive manager of the law on maximum use of domestic production capacity, also said, “The most important message and effect of this law is to be able to produce and distribute appropriate products which can substitute the imports.”

 

 Announcing one of the main areas of Rahmani’s programs is to support production, Froutani said, “One of the indicators of the new plan is to use the maximum capacity of domestic production that includes all products and service which of course are economical and have appropriate surplus values.”

 

The official of the Ministry of Industry, Mine and Trade also added, “All governmental organizations and public and semi-public entities have to register their requirements to goods on the announced online portal according to law; otherwise they will commit a violation of law.”

 

Also pointing to the gaps in the tariff system, Froutan said, “We need to identify and eliminate the bugs of the tariff system so that we can make everything transparent and prevent tax and duties evasion.”