In general, a luxury product is a product that has limited customers due to its high price and special technical specifications. Buyers of luxury goods are usually people with a high income level, but sometimes these goods are in high demand due to their luxury and are not necessarily limited to certain people.
From an economic point of view, the lack of a product that does not cause a problem for people’s livelihood in the conditions of a resistant economy is considered a luxury product. Sometimes, by banning the import of luxury goods, the government causes an increase in inflation in the household basket and imposes more economic pressure on the people. But the question that preoccupies the minds of the audience is whether not issuing a license to import luxury goods can have a positive effect on the economic flow of the country?
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The effects of banning the import of luxury goods
Due to the imposition of unprecedented sanctions on our country, with the decrease in oil revenues and the direct impact of this issue on the country’s economy and people’s livelihood, some experts believe that the only way to save the country and overcome these difficult conditions is to ban the import of luxury goods and special focus on the production and increase of non-oil exports.
In this regard, the import of luxury and non-essential goods and of course similar domestically manufactured goods are prohibited. According to the Acting Minister of Industry, Mining and Trade, 85% of the country’s imports are the supply of raw materials, parts and equipment needed for production and machinery; The import of 2,500 tariff lines related to these items and similar domestically manufactured goods is prohibited. Also, the remaining 15% of imports are related to basic and essential goods needed by the people.
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Increase in foreign exchange income
Due to the special conditions that have arisen and the significant reduction in the country’s oil revenues, the government has explained various plans to deal with these conditions. One of the four strategic plans of the Ministry of Security for the development of exports and control of imports is a special look at increasing non-oil exports. With this work, in addition to controlling and managing the country’s foreign exchange, foreign exchange earnings from non-oil exports are compensated. It also provides raw materials, machinery and equipment needed for production.
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? Is it good to ban the import of luxury goods
Due to the decrease in oil revenues, some foreign goods may have a lower cost price than domestic goods. Considering the unfavorable economic conditions of the people, an appropriate way of support is to increase government subsidies for domestic goods rather than banning foreign goods. In this case, if the domestic product is without competitors, the possibility of abuse to increase the price will also decrease.
Meanwhile, some importers use their power to put pressure on the government and bypass the administrative and customs structures of the country. These people get a special rent after banning the import of goods, which harms the country’s economy.
Among the negative effects of restrictions on the import of goods, we can mention the increase in smuggling, the creation of unhealthy relations in customs, and the creation of grounds for circumventing laws and customs. Also, people who had imported prohibited goods and stored them in their warehouses before the implementation of this law, can sell these goods at exorbitant prices; This increases inflation and increases the price of essential goods in people’s lives.
Due to the decisions taken to ban the import of luxury goods and the events resulting from it, more foreign goods are considered luxury and are removed from the lives of people in the lower deciles of society. The currency problems of the country have entered the field of basic goods and have put a lot of pressure on the common people and the lower deciles of the society.
