Iran’s economy minister says sanctions had some positive effects on national economy

Business Materials 11 November 2013 12:49 (UTC +04:00)

Baku, Azerbaijan, Nov. 11

By Fatih Karimov - Trend: Iranian economy minister Ali Tayyebnia said international sanctions have also had positive effects on the national economy, the Mehr News Agency reported.

They forced the country's economic officials to pay special attention to tax revenue instead of oil income, he added.

"In recent years, international sanctions and an improper foreign policy which led to political tension with the global community put heavy pressure on the national economy."

Being dependent on oil revenues has raised administrative costs. The more the share of taxable income in the national economy is increased, the more the economy will become healthy, he said.

Iran's direct tax revenue has increased by 28 per cent during the first seven months of the current Iranian calendar year (started on March 21) compared to the same period of last year, head of Iranian Taxes Affairs Organisation, Ali Askari said, Mehr news agency reported on Nov. 8.

The direct tax incomes amounted to 219 trillion rials, about $8.79 billion based on the official rate of 24,900 rials per each USD during the aforementioned period.

U.S. and EU sanctions aimed at ending Iran's nuclear programme have cut Iran's oil exports in half from pre-2012 levels and cost it billions of dollars a month in lost revenue, according to Reuters.

The Middle East nation's crude exports excluding condensate, are expected to fall nearly 30 per cent from a year earlier to 719,000 barrels per day (bpd) in October, according to the sources who track its tanker loading plans.

September loadings were estimated to have come in at 966,800 bpd, according to the sources.

That means a plunge in exports to near the 636,000 bpd level touched in April which is the smallest daily average in decades.