Iran’s budget bill sees $40 billion in taxes and charges income

Iran Materials 8 December 2012 12:44 (UTC +04:00)

Azerbaijan, Baku, Dec.8/ Trend G.Mehdi/

Iran foresees 370 trillion rials (about $31 billion) in tax revenues and 110 trillion rials (about $9 billion) in charges income for the next Iranian fiscal year, which begins on arch 20, 2013, the Fars News Agency quoted State Tax Affairs Organization's deputy director Hossein Vakili as saying.

The next year's national budget bill has envisaged 370 trillion rials in tax revenues, compared to 340 trillion rials in the current year's budget bill, he said, adding that charges income has been envisaged to remain unchanged at 110 trillion rials.

On November 28, ISNA quoted State Tax Affairs Organization's director Ali Askari as saying that Iran gained roughly 194 trillion rials (about $16 billion) in direct tax incomes during the first eight months of the current Iranian calendar year, which began on March 20.

He added that direct and indirect tax incomes grew by 20 percent and 43 percent compared to the same period in the previous year.

On October 31, ILNA quoted Tehran Chamber of Commerce Chairman Yahya Al-e Es'haq as saying that Iran will replace oil incomes with tax revenues in the next calendar year's national budget act.

The next year's budget act has paid special attention to tax incomes, he said, adding that tax incomes will be the main sources of securing the state budget.

Economic and Finance Minister Shamseddin Hosseini said last week that if the administration faces any problem in selling crude oil, it will make for costs through the use of tax revenues.

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, 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.