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Iran earns about $7B through implementing subsidy reform plan

Business Materials 27 October 2014 13:04 (UTC +04:00)

Baku, Azerbaijan, Oct.27

By Fatih Karimov - Trend:

Iran has earned about $7 billion through implementing the subsidy reform plan in the country in the first half of the current year (began on March 21).

Iranian MP Gholam-Ali Jafarzadeh said 95 percent of the subsidy reform plan's generated income has been paid in cash to people, Iran's Fars news agency reported on October 27.

He also said that no measure has been taken in the six-month period to exclude high-income people from receiving cash subsidies.

Iranian finance minister Ali Tayyebnia said in August that a list of high-income people has been prepared and these people will be gradually excluded from receiving cash subsidies. He noted that it is not fair that all people receive cash subsidies.

In May, Head of the Iranian Chamber of Commerce's Export Committee Asadollah Asgaroladi said just 15 million Iranian are eligible to receive cash subsidies.

Despite the demands of the Iranian officials, only 2.4 million citizens of the country voluntarily gave up on receiving cash subsidies.

Iran's State IRNN TV quoted the spokesperson of the Iranian government, Mohammad Bagher Nobakht, as saying on April 23 that some 73 million Iranian citizens registered for receiving cash subsidies, while the government expected 30 million people would skip the offer.

In the first stage the government paid 45,500 rials (about $18) to citizens to compensate for a partial cut of subsidies.

It is estimated that the government will acquire 480 trillion rials (about $19.3 billion) in the current Iranian calendar year (March 2014-March 2015) in revenues through the implementation of the second phase of the economic reform plan.

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