TEHRAN – Iran's Special Economic Zones recorded $8.5 billion in exports over the first eight months of the current Iranian calendar year (March 20-November 21), according to Reza Masrour, secretary of the Iranian Free Zones High Council.

Masrour highlighted government support in revising regulations that were originally intended for the domestic market but were applied to free zones. “We plan to amend specific regulations, particularly those concerning vehicle imports,” he said. “While gasoline-powered passenger cars can be imported into the mainland, such imports are currently restricted in free zones. We are working to address this issue through a directive.”

He also mentioned the lack of a unified strategy for the free zones, saying: “While most zones have had their individual master plans, there hasn’t been a comprehensive strategic document for all regions.”

“We are currently developing a strategic roadmap that will identify each zone's priorities. The document is expected to be finalized within two months and submitted to the Free Zones High Council. This will help investors determine where and how to focus their investments,” he added.

On the issue of value-added tax (VAT) on products manufactured in free zones, Masrour criticized its implementation, stating that it has increased production costs and deterred investments.

“Our proposal is that VAT should only apply when goods produced in free zones are imported into the mainland,” he said.

Addressing digital economy initiatives, Masrour revealed that a strategic plan for advancing the digital economy in free zones is being developed in cooperation with Sharif University of Technology.

“Free zones focused on the digital economy are considered next-generation zones, or seventh-generation zones,” he explained.

The official reaffirmed the economic significance of Iran’s special zones, noting that their $8.5 billion export performance in the mentioned period reflects their role in supporting Iran's trade and economic development.

The establishment of free trade zones (FTZs) in Iran dates back to the Iranian calendar year 1368 (March 1989 - March 1990) following the fall in the country’s oil income in the preceding year which prompted the government to promote non-oil exports.

The first two free trade zones of Iran were established in the south of the country. The first one was Kish Free Trade Zone established in 1368 on Kish Island in the Persian Gulf and the second one was Qeshm Free Trade Zone established the year after on Qeshm Island in the Strait of Hormuz. 

Some five other free trade zones have been also established in the country since then, including Chabahar in southeastern Sistan-Baluchestan Province, Arvand in southwestern Khuzestan Province, Anzali in northern Gilan Province, Aras in East-Azarbaijan Province and Maku in West-Azarbaijan Province, both in the northwest of the country. 

The development of existing free trade zones and the establishment of new FTZs has become one of the major economic approaches of the Iranian government.

EF/MA