Removal of 4,200 tomans currency of imported goods

Considering the implementation of changes regarding the application of the ETS rate in the country’s budget law of 1401, the removal of the exchange rate of 4,200 tomans for customs imports is on the agenda. If this order is implemented, the commercial profit will be greatly reduced and there is a possibility of excessive increase in the costs of the production units. Does the government have a plan to reduce the costs of the production sector?

According to the announced news, the budget law was recently notified by the parliament speaker to the government so that the implementation of the laws and clauses of the budget law of 1401 will be put on the agenda of the executive bodies. The revenue section of the budget law of 1401 indicates that the customs exchange rate of imported goods in all cases, including the calculation of import duties, is determined based on the exchange rate announced by the central bank in the electronic exchange system (ETS).

In part 2 of this paragraph, it is mentioned the 4% reduction of customs duties for basic goods, medicine and medical equipment and 1% reduction of agricultural and livestock institutions in 1401.

But no decision has been taken on other essential goods. This is despite the fact that in last year’s budget law of the Islamic Council, customs duties for other goods were set at 2%.

According to the budget law of 1401 and the order to remove the currency of 4200 Tomans, we must mention a few points:

1) The exchange rate in the ETS electronic exchange system is calculated based on the average exchange rate in the foreign exchange market. The exchange rate in the ETS system was bought and sold between 23,600 and 23,800 Tomans on March 29, 1400, while the exchange rate was calculated based on the calculations of the budget law of 23,000 Tomans.

2) According to the order of the parliament, the government is obliged not to increase the prices of basic goods, medicine and medical equipment and agricultural and livestock inputs. Considering that in the year 1400, the tariff of imported goods, which includes the currency of 42,000 rials, was about 4 or 5%, and in the new year, the tariff has been reduced to 1%, and also some of these goods are exempt from paying value added tax and paying duties. There are, so there should not be an increase in price, but we must also pay attention to the fact that taxes and duties are calculated based on the calculated value of customs and duties and input, and in any case, it will cause inflation and increase the price.

3) Even if customs duties are reduced from 4% to 1% for basic goods, medicine and medical equipment and agricultural and livestock inputs, it is not possible not to increase the prices because the cost of buying imported goods based on the exchange rate will not be preferred.

With the removal of 4,200 Tomans currency, if the government does not make a decision to import other goods, there will be a possibility of a sharp increase and inflation for other goods, and here we must pay attention to several points.

1) In the budget law of 1401, no decision has been taken to reduce the customs duties of other goods, and the government is likely to implement a program to reduce commercial profits.

2) In the past years and the year 1400, imported goods, except essential imported goods, were bought and entered the country with Nimai currency, and import duties, taxes and duties were paid to the customs based on the currency of 4200 Tomans, so there was a change in the initial purchase price of imported goods. can’t

3) Due to the fact that essential imported goods, including the import of medicine and medical equipment, agricultural and livestock inputs, were imported into the country with a currency of 4,200 Tomans in the past, and in the case of imports with a currency of 23,000 Tomans, the purchase price of the goods will increase at least 5 to 6 times. had

4) With the increase in the exchange rate of the import of goods, the customs value, which is the basis of customs calculations, increases several times, and as a result, the import duties also increase. will change, which will increase several times the value added tax and duties. If the customs duty of basic goods has been reduced to 1%, but 9% of taxes and duties have remained in place and have not decreased.

5) Production units and merchants will face problems of lack of liquidity due to the increase in import costs and the increase in amounts paid to customs, which will ultimately lead to an increase in the price of goods in the market and cause severe inflation.

It should be seen what will happen in the continuation of the parliament’s plan to remove the currency of 4200 tomans and reduce the customs fees of other imported goods and control inflation in the market.