...

About 40 percent of Iran’s overall economy is tax excluded

Business Materials 16 August 2014 14:42 (UTC +04:00)

Baku, Azerbaijan, Aug. 16
By Umid Niayesh - Trend:

About 40 percent of the Iran's overall economy does not pay taxes, head of the Iranian Taxes Affairs Organization, Ali Askari said.

Considering the exemption of agricultural exports from taxation about 15 percent of the country's GDP is not being taxed, Askari said, Iran's official IRNA news agency reported on Aug. 16.

"If we also add the tax free oil sectors the figure will surpass 40 percent," he said.

Askari underlined that tax evasion also shares at least 24 percent of Iran's GDP.

Iran's tax revenues stood at 187 trillion rials (some $7.19 billion based on official rate of 26,000 rials per each USD) during the 4-month period from March 21, which indicates a rise by 48 percent compared to the same period of the preceding year.

It should be noted that Iran's fiscal year starts on March 21.
Iran's tax revenues (660 trillion rials or $21.29 billion) account for 34 percent of the country's total budget in the current fiscal year, which is 18 percent more than the previous year.

However, Askari said last December that realization of the figure will be difficult considering the current taxation processes.

Previously 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".

Tags:
Latest

Latest