News Agency - Detail

MOP Leads National First-Production Efforts

MOP Leads National First-Production Efforts
(Wednesday, September 20, 2023) 14:44

TEHRAN (NIPNA) -- The Secretary of the First-Production Task Force at the Office of Scientific and Technological Affairs of the Presidency emphasized the Ministry of Petroleum’s pivotal role as the leading entity in first-production endeavors within the nation.

Hadi Paraj, during a specialized session titled "Tax Credits for First-Production Companies," on the sidelines of the Iran Plast International Exhibition, highlighted that, in total, over 80 projects, valued at $85 million, have reached the final contract phase out of 382 first-production requests submitted across the country. Notably, 226 of these requests fall under the purview of the Ministry of Oil.

Paraj remarked, "Among the challenges of entering first-production contracts are the multitude of claimants for yet-to-be-manufactured goods, pricing complexities in first-production valuation, financial and technical risks, as well as unsuccessful project dumping and regulatory oversight agencies."

He further elucidated that the main prerequisites for the development of native contracts include determining the depth of localization and the level of project profitability, specifying technical criteria, pricing first-production, outlining payment phases, and designing testing scenarios.

Paraj concluded by underscoring the significant cost reductions achieved in the production of these commodities by the Ministry of Oil, with savings ranging from 30% to 60% compared to foreign counterparts. This achievement signifies a substantial milestone in supporting national industries and fostering economic growth.

Ali Darabi, representing the Policy-Making Office of the Office of Scientific and Technological Affairs of the Presidency, added that the most significant financial support provided by the Office for first-production, knowledge-based companies includes the exemption of sales tax for knowledge-based products (Articles 3 and 9 of the Knowledge-Based Companies Law) and tax credits for research and development (Section B, Article 11 of the Innovation in Knowledge-Based Production Law). Darabi further elaborated that, according to Section B, Article 11 of the Support for First-Production Companies Law, the equivalent of expenses incurred for research and development activities is granted as tax credits, which can be offset against future years' taxes for interested companies and institutions. The executive regulations for this provision will be promulgated within a maximum of three months from the date of the enactment of this law, in collaboration with the Ministry of Economic Affairs and Finance, the Ministry of Science, Research, and Technology, and the Ministry of Health.

Moreover, Darabi articulated that the criteria for approving research and development projects in the field of first-production encompass systematization, a minimum medium-to-high level of technological proficiency in the country, and technical mastery at the project's conclusion.

Email is required
Characters left: 500
Comment is required