New Delhi: Iran has decided to abolish the 33 per cent work permit tax for Indian business houses and workers, bringing relief to a "sizeable" number of expatriates in that country and encouraging more migration of skilled manpower.

The abolition of permit tax, effective from April 2003, is slated to benefit as many as 100 expatriate business ventures employing a significant number of Indians in Iran.

This decision was conveyed by Iranian Labour and Social Affairs Minister Seyed Safdar Hosseini to his Indian counterpart Sahib Singh Verma at a reception, organised by Indo Iranian Chamber of Commerce on August 31, an official release said.

Hitherto, the Iranian Labour Ministry, which determines the salaries of all workers of foreign origin, was charging a work permit tax of 33 per cent from all expatriate workers and business houses.

Expressing his gratitude, Verma said, "It (the decision to abolish permit tax for Indian expatriates) would facilitate greater interaction and transnational migration of skilled manpower between both the countries."

Calling for broadening co-operation in the fields of technical and vocational training between India and Iran, Verma said the decision to withdraw the permit tax would encourage business in the areas of medicine, engineering and Information Technology.

PTI