Official: 25 percent of Iran’s overall economy is not being taxed

Business Materials 30 December 2013 13:01 (UTC +04:00)

Baku, Azerbaijan, Dec. 30

By Umid Niayesh - Trend:

About 25 percent of the Iran's overall economy does not pay taxes, head of the Iranian Taxes Affairs Organization, Ali Askari said, IRIB news agency reported on Dec. 30.

Askari went on to note that tax evasion is the main problem of the country's taxation system.

He also underlined that tax revenues share some 45 percent of the current Iranian calendar year's budget (started on March 21).

The business sector shares 30 percent of the country's GDP, meanwhile shares only 6 percent of the total tax incomes, Askari added.

Tax income is projected to hit 600 trillion rials( $24.2 billion based on official rate of 24,774 rials per each USD) in Iran's next year budget bill, he said, adding that realization of the figure will be difficult considering the current processes.

In mid-December, Mehr quoted Askari as saying that Iran's tax revenues are projected to hit 410 trillion rials (about $16.55 billion) by the end of current Iranian calendar year (March 21, 2014).

In August, Iranian Economy Minister Ali Tayyebnia said that tax evasion in the country should be dealt with.

"We are planning to increase tax incomes, not through raising charges, but through preventing tax evasion," Tayyebnia added.

"The goal will be achieved through establishing a comprehensive databank on tax affairs," the minister said.

"The administration will place the priority on channeling liquidity into the production sector and provide economic enterprises with revolving capital," he noted.

Edited by C.N.