The issue of free trade zones in the country is one of the challenging topics that has occupied the minds of experts and policymakers for decades. The performance of free trade zones, at least compared to other countries, is not acceptable. There are many reasons for this lack of success, the most important being the multiplicity and breadth of objectives assigned to these zones by law. Another reason for the underperformance is the absence of essential infrastructure, physical and institutional facilities, which has led to insufficient support for activities, especially production and industrial activities. Some experts believe that the type of incentives provided by policymakers in Iran’s free trade zones is another reason for their lack of success and inefficiency. One such incentive is the blanket tax exemption that applies to all types of production and service activities in the free zones, which raises many issues. The main question addressed in this research is whether the country’s free trade zones should benefit from tax exemptions. If they are to be granted exemptions, how should these advantages be offered? Should these exemptions be general and blanket, or should they be targeted and specific?

It is noteworthy that this research report, written by Younes Teymouri, Saman Panahi, and Bahareh Fahimi, has been prepared and compiled in 111 pages by the Research Group for New Systems of Planning, Budgeting, and Modeling at the Center for Development and Foresight Research.