The economy of Iran is one of the most successful in the Middle East. With a population of over 80 million people, Iran is the second-largest economy in the region and has a GDP of $425 billion. Iran is a major producer of oil and gas and is the second-largest exporter of oil in the world. 

The import sector in Iran is a vital part of its economy. Iran imports a wide variety of goods, ranging from food and beverages to machinery and technology. It is also a major importer of consumer goods, such as cars, electronics, and clothing. Iran’s imports are mainly sourced from China, India, and the United States.

Anyone wishing to profit from Iran’s import sector may do so by establishing an import business here. However, before embarking on such ventures, one must first learn about the country’s import taxes and laws. This article discusses all necessary and noteworthy facts that will help entrepreneurs better understand this sector and its surcharges.

Import taxes in Iran 

Iran is a country with a long-standing history of imposing tolls on goods entering its borders. These taxes are an important source of revenue for the government, and as such, it is essential to understand the rates and regulations governing them. 

The import taxes imposed in the nation are based on the Harmonized System of Classification, which is an internationally recognized system of classifying goods according to their type and purpose. There are three main types of import taxes in the country: customs duties, value-added taxes, and excise taxes. Customs duties are imposed on imported goods and are calculated based on the type of product, its value, and the country of origin. Value-added levies are imposed on imported goods and services and are based on the value of the products or services. Lastly, excise tolls are imposed on certain imported goods, such as alcohol and tobacco, and are based on the quantity of the product imported.

Import taxes rates

The tax rates in the country vary depending on the type of items, with some items being taxed at a flat rate of 10%, while others may be taxed at a higher rate of up to 40%. Additionally, some items may be subject to additional taxes or fees, such as customs fees and other fees. A few important tax rates on certain items in the country are mentioned below. 

Vehicles

The Import tax rate for cars is currently set at 25%, while used vehicles are subject to a 15% tax rate. This is a great incentive for those looking to purchase vehicles from abroad, as it helps to keep the cost down and makes it more affordable.

Heavy machinery 

The import tax rates on heavy machinery in the nation are relatively low, ranging from 5-20%, depending on the type of machinery being imported.

Iron and steel

The import tax rate on iron and steel in the state is 7.5%. They are set at a reasonable rate and are designed to ensure that the domestic industry is not adversely affected by the influx of foreign goods.

Chemicals 

The country applies 14% of import tariffs on chemical products. The rates are competitive and provide a great incentive for businesses to invest in the local market. 

Import taxes exemptions 

The government has implemented several taxes exemptions to promote international trade and economic growth. These exemptions are designed to facilitate the free movement of goods and services between Iran and other countries and to encourage foreign investment. Import exemptions are a key component of free trade agreements, which have been signed between Iran and some countries, including the United States, the European Union, and China. 

There are different types of import tax exemptions allowed by the state. The first type of exemption is the Preferential Tariff. This exemption allows certain goods to be imported into Iran at a reduced rate of duty. The second type of exemption is the Exemption of Customs Duty. This exemption allows certain goods to be imported into the country without paying any customs duties. 

Another type of exemption is the Exemption of Value Added Tax, which is beneficial for businesses that are bringing in goods from countries with which Iran has a double taxation agreement.