Cash subsidies to high-income families to be canceled next year in Iran

Business Materials 16 December 2019 15:25 (UTC +04:00)
Cash subsidies to high-income families to be canceled next year in Iran

TEHRAN, Iran, Dec.16


The deputy director of Iran's Planning and Budget Organization announced the government's plan to eliminate cash subsidies for high-income households next year.

“Iran's economy is very diverse and large, and the implementation of tax policies have several problems,” Seyed Hamid Pour Mohammadi said, Trend reports citing ILNA.

"In this economy, tax is only received from the transparent sectors of the economy, for example from employees or production units," he said.

"It's not fair for the poor to pay 10 percent tax and the rich to pay the same rate," said the deputy director of the Planning and Budget Organization.

“A person who earns a lot of money have to pay the tax at a higher rate. The poor, on the other hand, should be provided with more tax breaks,” Pour Mohammadi emphasized.

He added that tax transparency and easing are part of the organization's plans.
"We are gradually moving toward the taxes for family policy so that all families must file a tax return,” the deputy director added.

"Households with high incomes must pay taxes in proportion to their income and the lower income families will be supported,” Pour Mohammadi said.

"By implementation of this policy, the country will no longer require multiple subsidy determination institutions," the offiicial added.

“For the next year, $41.6 billion is estimated to be obtained via tax revenues,” he said.