The parliament Research Center has suggested that the budget bill 2024 consider incentives to connect people to optical fiber. The center did not find tax incentives for digital economy businesses to be effective and said instead that businesses should be provided with access to public and government data. It is also suggested to spend up to 1,600 billion tomans to support domestic mobile phones
According to Iran digital economy annotation, the parliament Research Center in this report, in which note 11 of the 2024 budget bill related to the field of communication and information technology, has been reviewed, has made suggestions for correction.
In its report, the center has suggested that the government spend money to connect users to optical fiber. In this regard, a section has been requested to be added to paragraph B of Note 11 of the budget, in which the Ministry of Communications is obliged to spend 30% of the resources of the optical fiber development account as an incentive to connect end users to optical fiber. Also, the resources allocated to the operators in this section should be subject to the law of maximum use of production and service power in order to support local equipment.
Create an artificial intelligence development account
In the budget bill 2024, the government has repeated clause 2023, according to which businesses of natural persons present in internal platforms approved by the Ministry of Communications are exempted from taxes. The research center has said that this clause is not very attractive for businesses and its infrastructure is not available, so it is better to support businesses in another way.
One of these proposals is to enable businesses to use public and government data. For this purpose, it is suggested that institutions such as the Real Estate and Deeds Registration Organization and the Ministry of Roads and Urban Development be required to provide and promote their offline services and provide them with the inquiries required by private platforms online.
Another proposal is to create an account for the development of artificial intelligence from the Ministry of Communications (80 percent) and the resources of the presidential science and technology department (20 percent).
The center has also suggested that facilitating the entry of businesses in this field into the capital market and helping to value and accept their intangible assets can be another attractive driver of this sector.
The infrastructure company should invest in traffic transit
In this report, it is stated that despite the discussion of data transit in the sixth development plan, no effective action has been taken by the government to realize it.
In order to develop traffic transit, it has been proposed to add to Note 11 of the budget, according to which the infrastructure communication company is obliged to separate the revenues of international transit traffic from the other revenues of the company and spend 30% of it to achieve the goal of transit of 30 terabits per second.
Internal mobile support
In the budget laws of the past years, it was required that the resources obtained from the import tariff of phones above 600 dollars be used to support the production of domestic smartphones and the microelectronics industry, but the budget bill 1403 did not mention the way of spending these resources.
According to the authors of this report, bringing this sector in the budget in the past years alone did not lead to the support of these industries. They have suggested adding a clause to Note 11, according to which, in addition to making it mandatory to allocate the import tariff for phones above 600 dollars to support domestic phones and microelectronics industries, the mechanism should also be specified.
For this purpose, spending of resources should be done with the agency of Innovation and Prosperity Fund. In addition, the Ministry of Security, in cooperation with the Ministry of Communications, approved the regulations on how to spend.
Also, 100 billion tomans have been proposed for the training of manpower and the development of chip design infrastructure in the country with the focus of the scientific deputy, between 100 and 500 billion tomans in order to support the mass production and commercialization of functional chips with the focus of the Ministry of Security and between 500 and 1000 billion for Support the completion of the value chain and infrastructure of semiconductor production with the focus of the Ministry of Defense.
Cyber security based on the seventh plan
In the 7th Development Plan, it is stated that the Ministry of Communications, in cooperation with the Ministry of Information, the IRGC Intelligence and the Non-Active Defense Organization, is required to provide security services and evaluate the annual cyber security rating of executive bodies.
On the other hand, in paragraph A of note 13 of the budget bill, it is stated that all executive bodies, government companies and organizations that use public funds are required to allocate at least half of their budget in 2024 to the issue of network security and countering cyber attacks. The research center has said that spending alone is not enough and the budget should rely more on the provisions of the 7th plan.
For this purpose, it has been proposed to amend the clause related to security in the budget in such a way that half of the cost of the devices is allocated to cyber security based on the results of cyber evaluation and rating of the device in accordance with the rules approved by the Supreme Council of Cyber Space and through qualified security operators.
The Ministry of Communications should also compile the regulation of this note in cooperation with the Ministry of Information, the IRGC Intelligence and the Non-Active Defense Organization and submit a report on its implementation to the Parliament’s Industries Commission every 6 months.
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