Confusion in Iran’s economy plans

Confusion in Iran’s economy plans

Dalga Khatinoglu, Trend Agency's Iran News Service Chief/

Iranian Parliament is preparing a bill aimed to decrease taxes and social welfare charges of the producers by 10 percent and 15 percent respectively.

Currently, the share of taxes in Iran's GDP is about 7 percent.

On August 10, the State Tax Affairs Organization's director Ali Askari said that the current year's budget law has envisaged earning some $27.7 billion as a tax income.

Decreasing taxes may help industry sector to revive a little, but regarding western sanctions targeting Iran's oil revenues, Iran has no choice, but to increase tax incomes by 2.5 times. Last year, Iran's GDP was about $411.4 billion, while oil revenues from exporting crude oil and petroleum production were about $115 billion.

However, Iran's oil export has fallen to 1.2 million barrels per day on average during current year. Even, according to the latest report of the International Energy Agency, which was published on October 12, Iran's crude oil exports and output stood at respectively 860,000 barrels and 2.63 million barrels per day in September, compared to 2.4 million barrels of oil exports and 3.68 million barrels per day last year. These figures were confirmed by Iranian Parliament Vice Speaker Mohammad Reza Bahonar last month.

Oil and oil production revenues make up about a half of Iranian yearly budget, which is about $449 billion based on official USD rate in Iran, and Iran has to increase taxes revenues to compensate oil export drop.

Last week the Strategic Research Center of Iran Expediency Council published a report, written by Iran's former deputy Oil minister during Mahmoud Ahmadinejad's first presidency, Akbar Torkan.

The report showed that about 60 percent of economic sectors in Iran do not pay any taxes, while 21 percent of economic activities are unaccounted.

Iran's current state budget has increased by 930 trillion rials (about $80 billion) compared to last year's.

Then Iranian government's expenses rise year to year, while Ahmadinejad Administration has faced significant amount of deficit during the last several years.

The Iranian Central Bank issued a report in May 2012, saying government debts to internal banks until the last solar year have increased four times during six years and reached 400 trillion rials (equals to $31.7 billion based on the official USD rate) and the head of the Supreme Audit Court, Abdolreza Rahmani Fazli confirmed in June 2011 that the Iranian government has borrowed $15 billion from banks since December 2010.

Regarding these facts, decreasing taxes and social welfare charges would damage more Iranian government and the economy.

Subscribe to Trend in Google News! Subscribe
Oil prices drop; Brent on track for first weekly dip in seven
Oil prices drop; Brent on track for first weekly dip in seven
IsDB Institute Wins Again ‘Best Islamic Research Firm’ Award
IsDB Institute Wins Again ‘Best Islamic Research Firm’ Award
Biden climate envoy Kerry to visit Saudi Arabia next week
Biden climate envoy Kerry to visit Saudi Arabia next week
Loading Bars
Latest
Azerbaijan's MoD inspects combat positions in liberated Kalbajar, Lachin districts (PHOTO)
Uzbekistan Airways opens tender related to local fire alarm system
Iran looks to enhance road development in Ardabil province
Main countries of origin for tourists arriving in Georgia
Spanish Gedepsa interested in growing olive plantations in Uzbekistan
Azerbaijan reveals number of mines, munitions found on its liberated lands (PHOTO)
Overview of Uzbekistan's retail trade turnover dynamics between 2010-2020
When Karabakh road infrastructure to be fully ready?
Armenians propagate Nazi Nzhdeh and accuse Azerbaijan of racism (VIDEO)
Relations With India Stronger Than Ever, Says Maldives Defence Minister
Bennett-Putin meeting lasted five hours, was warm and positive
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 2,112 more COVID-19 cases, 882 recoveries
Australia says EU has postponed free trade talks for second time
Azerbaijan’s volume of non-cash payments continues to grow
Delta Galil files for Nasdaq offering
Azerbaijan's investment attractiveness increased after liberation of its lands - minister (PHOTO)
Turkmenistan reduces wheat imports from EAEU states
Azerbaijan’s wheat imports from EAEU countries revealed
Belarusian company to supply Azerbaijan with cables
Azerbaijan sees growth in its population's bank deposits in September 2021
Azerbaijan commissions recently built military facilities in its liberated lands (PHOTO/VIDEO)
Non-tourist trips to Georgia plummet
Kazakh Tengizсhevroil to reduce LPG supplies to Ukraine after polypropylene plant's launch
Iran to use domestic capacity for road fleet modernization
Azercell once again bestowed with ISO 37001:2016 Anti-bribery Management Systems standard of compliance
Azerbaijan reveals data on mine clearance work carried out in liberated lands
Azerbaijan’s cargo transportation by all types of transport decreases in 9M2021
Ukrainian companies interested in entering Turkmen market
EBRD, EU to provide loans for indirect financing of green technologies in Georgia
SOCAR-AQS exceeds drilling progress plan
President Ilham Aliyev sends congratulatory letter to Hungarian counterpart
Azerbaijan to expand co-op with Turkey in mine clearance – ANAMA
Uzbekistan signs agreement to put out former uranium mining sites
Iran eyes developing non-oil exports
India hopes to work with China for resolution of issues: Shringla
Azerbaijan’s Bulla Deniz produces over 54,000 tons of oil with technical measures
UK foreign secretary begins India visit today, to hold talks with Jaishankar
Uzbekistan to expand network of local duty-free shops
Azerbaijani SME agency ready to fully support alternative energy dev't
SOCAR sums up results of operation at Oil Rocks
Turkmenistan overhauling railways on border of Akhal, Balkan regions
SOCAR reveals time of commissioning 2nd production complex at Gunahsli field
Uzbek, Russian enterprises considering joint textile enterprises
Azerbaijan to start exporting locally-produced mineral water to Europe (PHOTO)
Azerbaijan not planning to transfer all schools online - ministries
SOCAR details on works carried out at Heydar Aliyev Oil Refinery in 2020
Progress on CAREC transport projects in Kazakhstan unveiled
Russia reports 37,141 COVID-19 cases in past 24 hours
Natural gas, coal prices to remain at high levels through start of 2022
FAO's representative office may be opened in Turkmenistan
Kazakhstan's main gas supplier to engage repair services via tender
Oil demand to reach its pre-pandemic level in 2022
Regional carrier SkyWest cancels 700 U.S. flights over technical woes
Georgian energy reform to create competitive market
Turkmenistan, UN talk co-op in food security
Turkmenistan, EU to intensify co-op in number of areas
Turkic states need to jointly fight disinformation campaigns - Azerbaijani president's assistant
Kazakhstan boosts monetary base indicators
Azerbaijan exceeds commitment under OPEC+ deal
Kazakhstan's TOP-3 trade partners for 8M2021 announced
Pushed by ‘Covid growth drivers’, India on course to be $5 tn economy by 2024-25, says Puri
BCCI could earn up to $5 billion from IPL broadcasting rights
Chip crunch to cut Renault's 2021 output by 500,000 cars
2020 became particularly significant year for Azerbaijani people - president's assistant
Azerbaijani oil prices fall
President Ilham Aliyev, First Lady Mehriban Aliyeva and their daughter Leyla Aliyeva attend inauguration of DOST Center for Inclusive Development and Creativity (PHOTO)
Kazakh energy company opens tender to buy bitumen
Uzbekistan Airports JSC cuts tariffs for foreign airlines
President Ilham Aliyev, First Lady Mehriban Aliyeva and their daughter Leyla Aliyeva view conditions created at new rehearsal building of National Gymnastics Arena (PHOTO)
Equinor, SOCAR mull opportunities for exploration at ADUA
Uzbekistan’s Jizzakh Automobile Plant eyes increasing production capacity
Kazakhstan reports increase in product transport via pipelines
Kazakh energy company opens tender to buy electrical goods
In 44-day war in Karabakh, we witnessed two-faced behavior of int’l media – Erdogan
Azerbaijan's main goal after victory is restoration of Karabakh - president's assistant
Creation of green zones in Azerbaijan’s liberated territories - part of UN program to combat global climate change – Deputy Minister
Chambers of Commerce of Turkmenistan and Switzerland hold business forum
Gas prices to ease, but to remain elevated in Europe
Georgia shares data on COVID-19 cases for October 22
Turkmenistan to organize Business French language training for female entrepreneurs
JICA to issue report on Study for Electric Power System in Azerbaijan next year
Japanese companies to invest in Georgian energy sector
Kazakhstan introduces electronic customs escort of vehicles during goods transit
Azerbaijan, UN sign MoU to promote corporate sustainability
Azerbaijani Finance Ministry to put medium-term gov't bonds up for auction
Azerbaijan reveals state budget revenues for 9M2021
Azerbaijan's consolidated budget revenues increase
Expenditures of Azerbaijan's state budget for 9M2021 revealed
U.S. drops tariff threat in digital tax transition deal with European countries
Sputnik V contributes to one bln coronavirus vaccinations in India
Israel to readmit COVID-vaccinated foreign tourists next month
Oil prices drop; Brent on track for first weekly dip in seven
Higher oil, natural gas prices to see some demand destruction
IsDB Institute Wins Again ‘Best Islamic Research Firm’ Award
1,742 more COVID-19 cases reported in Kazakhstan
Biden says does not want cold war with China
Chamber of Commerce head talks Iran's trade, tourism ties with Oman (Exclusive)
NATO ministers agree on defense plan, investment in innovation
Biden climate envoy Kerry to visit Saudi Arabia next week
All news