Official: Iran gov't hurting private sector with increased taxes

Business Materials 12 November 2018 17:13 (UTC +04:00)

Tehran, Iran, Nov.12


Iranian government's efforts to compensate the oil sale drop by applying increased tax is harmful in recent recession, member of Iran Chamber of Commerce Mohammad Hossein Barkhordar said in an interview with Trend.

"In the current economic situation the private sector can be more helpful than the government because supervisions and regulations that restrict the government, do not apply to the private sector,” he said.

“Of course, the private sector needs government for better performance, for example, it needs Swift access, because high volume of liquidity cannot be transferred in cash," he said.

one of the needs of this sector in trading is the possibility of access to Swift, because the high volume of liquidity cannot be transferred in cash,” he said.

“The government also plays key role in providing access to interbank network,” he noted.

"In recent decades all governments have supported private sectors and economic self-sufficiency in theory but in practice, we have witnessed something else,” Barkhordar said, criticizing the business environment inside Iran.

"For example, a producer who needs licenses for opening manufacturing units, faces many problems, while in Georgia the same process is done within a few hours," he explained.

He noted that high taxes will hurt the private sector.

"The government should not increase the taxes on private sector in order to compensate its (low) oil revenue. This approach puts double pressure on this sector in the current economic situation, and the government should drop the tax and insurance rates,” he said.

At the same time, Barkhodar said it is interesting that some unofficial companies in Iran work without paying any taxes.