Green Petrochem Units in Iran to Be Exempted From Pollution Tax

EghtesadOnline: Petrochemical companies that reduce carbon emissions and are environmentally friendly will be exempted from pollution taxes levied by the Department of Environment.

News ID: ۷۸۳۳۳۴

18 July 2018

“Petrochemical complexes, the compliance of which with pollution standards is verified by the Department of Environment in its quarterly monitoring reports, will be no longer have to pay such taxes,” Shina Ansari, DOE’s head of Monitoring Office, was quoted as saying by NIPNA.

According to an amendment to the Taxation Law of the fiscal 2008-9, all petrochemical and refining industrial units are deemed carbon emitters and obliged to pay 1% of their sales revenues as tax.

The objective of carbon tax is to reduce the harmful levels of carbon dioxide emissions, thereby decelerating climate change and its negative effects on the environment and human health, Financial Tribune reported.

“We are giving such industries an opportunity to move toward improving their control systems and reduce carbon emissions,” Ansari said. According to the official, a number of facilities across the chain of petroleum industry have already embarked on such projects, including h optimization of water treatment systems, filtration and waste management.

“Another effective measure is the application of online monitoring system in industrial units,” she added.

Earlier reports quoting the DOE official said petrochemical complexes and refining industries were being equipped with online pollution control systems to deal with the growing menace of air pollution.Highlighting the importance of real-time reporting of contaminating indices in heavy industries, Ansari said online systems are crucial in today’s industrial landscape because of tighter compliance with stringent environmental standards.

“The system is mainly installed in chimneys as well as sewage collection networks,” she said.

On the other hand, she said, “As per a government directive, if industries do not uphold environmental protection regulations, they will face higher tax rates.”

The government has instructed power plants and refineries to use gas instead of polluting feedstock such as mazut because of the abundance of gas reserves and the rise in South Pars Gas Field output in the Persian Gulf.

According to Ansari, over 1,830 large-scale industrial units, including petrochemical and power plants, top the priority list to be equipped with the advanced system.

Iran is the world’s eighth biggest carbon dioxide emitter, producing 552 million tons in 2015, according to the US-based Union of Concerned Scientists. That partly derives from the country’s oil and natural gas production that drives its economy’s engine. Iran holds the world’s second-largest gas and fourth-biggest crude oil reserves.