Iran Halts Import Of Luxury Items
Iran has stopped the import of luxury goods, the deputy minister of trade and industry told the Mehr News Agency.
“We are currently reviewing the issue, which might lead to the lifting of the ban,” Hamid Safdel told Mehr.
With the steep rise in the exchange rate for the dollar against the rial, the government is looking at no longer providing subsidized dollars for the import of luxury goods.
Gas-guzzling cars, household goods, cell phones, computers and their parts, toys and decorative goods are among the goods already facing an import ban.
The Iranian government provides subsidized foreign currencies at rates close to 50 percent lower than the open market rate. The cutting of subsidized foreign currencies for luxury goods makes it impossible for businesses to make any profit on importing them.
Many economic analysts have repeatedly blamed the Ahmadinejad administration for failing to regulate imports, which many blame for the collapse of the domestic manufacturing sector.