(MENAFN) Iran's Parliament has approved a measure to lower customs duties on critical imports, including medicines, medical supplies, infant formula, essential goods, and agricultural inputs, for the next fiscal year. During a Sunday session dedicated to the revenue section of the upcoming budget bill, lawmakers agreed to reduce customs tariffs for these items to just one percent. Goods already subject to duties below this rate will remain unchanged under the new provisions.

This decision is intended to mitigate economic hardships faced by producers and consumers, helping to stabilize prices for essential commodities. The reduced tariffs will apply to a wide range of items, including raw materials, medical consumables, and vital agricultural and livestock inputs. The move reflects the government’s broader strategy to alleviate financial pressures on households and support key sectors of the economy during challenging times.

The Central Bank of Iran (CBI) reported that USD47.375 billion in subsidized foreign currency had been allocated to importers of basic goods between March 20 and November 30 of the current Iranian calendar year. Of this, USD9.899 billion was used for importing essential goods and medicine, USD26.116 billion for commercial goods, USD981 million for services, and USD10.379 billion for imports tied to exports of goods or services.

Basic goods and medicines are being imported at a subsidized exchange rate of 285,000 rials per U.S. dollar, significantly lower than the market rate of approximately 700,000 rials per U.S. dollar. Additionally, importers can access foreign currency through the CBI’s Forex Management Integrated System (NIMA), where the rate was 450,937 rials per U.S. dollar as of mid-August. These measures aim to balance affordability and currency stability in a fluctuating economic environment.

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