Iran to replace oil with tax in state budget - official
Azerbaijan, Baku, Oct.31 Trend G.Mehdi/
Iran will replace oil incomes with tax revenues in the next calendar year's national budget act, ILNA quoted Tehran Chamber of Commerce Chairman Yahya Al-e Es'haq as saying.
The next year's budget act has paid special attention to tax incomes, he said, adding that tax incomes will be the main sources of securing the state budget.
Economic and Finance Minister Shamseddin Hosseini said last week that if the administration faces any problem in selling crude oil, it will make for costs through the use of tax revenues.
Iranian Parliament is preparing a bill aimed to decrease taxes and social welfare charges of the producers by 10 percent and 15 percent respectively.
Currently, the share of taxes in Iran's GDP is about 7 percent.
On August 10, the State Tax Affairs Organization's director Ali Askari said that the current year's budget law has envisaged earning some $27.7 billion as a tax income.
Decreasing taxes may help industry sector to revive a little, but regarding western sanctions targeting Iran's oil revenues, Iran has no choice, but to increase tax incomes by 2.5 times.
Last year, Iran's GDP was about $411.4 billion, while oil revenues from exporting crude oil and petroleum production were about $115 billion.
However, Iran's oil export has fallen to 1.2 million barrels per day on average during current year.
Even, according to the latest report of the International Energy Agency, which was published on October 12, Iran's crude oil exports and output stood at respectively 860,000 barrels and 2.63 million barrels per day in September, compared to 2.4 million barrels of oil exports and 3.68 million barrels per day last year. These figures were confirmed by Iranian Parliament Vice Speaker Mohammad Reza Bahonar last month.
Oil and oil production revenues make up about a half of Iranian yearly budget, which is about $449 billion based on official USD rate in Iran, and Iran has to increase taxes revenues to compensate oil export drop.