Tax revenues may compensate for decrease in Iran’s oil revenues in long-term

Tehran, Iran, Nov. 19

By Temkin Jafarov, Milad Fashtami - Trend:

Mehrdad Emadi, an economic analyst, told Trend Agency on Nov. 19 that in the short-term, tax revenues cannot compensate for the budget deficit that Iran is expected to face due to a decrease in oil revenues.

"Iran's economic growth has become positive but still the private sector is struggling with all-out recession," he explained.

"In order to increase tax revenues, the government has to put tax on either salaries and personal incomes or the company's profits," Emadi said, adding that this may be possible in medium-term.

He went on to note that Iran is one of the top countries in the region and even the world with the highest rate of tax evasion.

"According to Iran's Majlis (parliament), some 85 percent of the companies do not pay tax to the government," he said.

"If the companies pay their actual taxes, Iran's annual tax revenues would reach $4 billion. And if individuals also pay their actual taxes, another one billion dollars would be added to the mentioned figure," Emadi noted.

"The figure is significant in itself, but still cannot be compared to the country's oil revenues. So paying all the expenses of the government by tax revenues is not possible in the short-term or even medium-term, but it may be possible in the long-term," he analyst said.

"In order to decrease the country's dependence on oil revenues, Iran should put tax on people's wealth instead of incomes," he said, adding that Iran's tax on inheritance is much lower than the average of European countries and could be raised up to three-fold.

"By doing so Iran may be able to increase its tax revenues by several times," he added.

Iran is expected to face a budget deficit in the current Iranian calendar year (to end March 20, 2015), due to the sharp fall in oil prices.

Iran's current year budget envisages the price of $100 per barrel of oil, while each Iranian oil barrel is currently sold at around $80.

Based on Iran's budget law, the country is supposed to export 1.4 million barrels of oil (including gas condensate) per day.

Reports suggest that the country is daily earning $18-20 million less than the projected figure, so if the current trend continues the total budget deficit may soar above $2.5 billion.

Iranian President Hassan Rouhani has also predicted that Iran's total oil revenues will be 30 percent less than expected.

Subscribe to Trend in Google News! Subscribe
NIOC agrees with Russian companies to develop Iran's oil, gas fields
NIOC agrees with Russian companies to develop Iran's oil, gas fields
UK Foreign Secretary to meet with Lavrov in Moscow in February
UK Foreign Secretary to meet with Lavrov in Moscow in February
Russia reports 49,513 daily COVID-19 cases, a new high since start of pandemic
Russia reports 49,513 daily COVID-19 cases, a new high since start of pandemic
Loading Bars
Latest
Iran shares data on buy/sell operations at its Mercantile Exchange
Most people feel I-T exemption limit could be raised from Rs 2.5 lakh: India's KPMG
Turkmenistan’s Balkandokma complex doubles cotton yarn sales
Uzbekistan reveals data on agricultural, forestry and fisheries production
Tax benefits to increase disposable income likely in India's Union Budget
Uzbekistan approves procedure for rational use of land resources
S&P discloses inflation forecast for Azerbaijan through 2025
S&P Global Ratings announces forecast for Azerbaijan's budget surplus
Magnitude 6.2 earthquake strikes Unalaska, Alaska
NIOC agrees with Russian companies to develop Iran's oil, gas fields
SOCAR dismisses information about purchasing bitumen plant in Armenia
Kazakh company eyes to import leather products from Uzbekistan
S&P comments on possible swap line between Central Banks of Azerbaijan and Turkey
Oil production in Azerbaijan to moderately rebound - S&P
Georgia discloses its main cement sources of import
Turkmenistan lays out plans for hydrogen energy development
US lawmakers seek litigation at WTO against India on wheat subsidy
Iran, Azerbaijan continue construction of Khudafarin and Giz Galasi hydro junctions (PHOTO)
Climate policy of Uzbekistan: Implementation of measures to prevent climate change and adaptation in most vulnerable sectors of economy
S&P Global Ratings approves Azerbaijan's credit rating at 'BB+/B'
UK Foreign Secretary to meet with Lavrov in Moscow in February
Netaji’s statue at India Gate to be 25 feet high: NMAG director
India to allow arms manufacturers to enhance production
Kazakhstan names Samruk-Kazyna's entreprises planned to be put up for IPOs
Iranian currency rates for January 22
Statistical center of Iran reveals figures of growing inflation
Azerbaijan reduces quarantine period for COVID-19 patients
Kazakh Gas Processing Plant opens tender on manufacturing of parts for pumping equipment
Azerbaijan's Kalbajar - most suitable for winter tourism among liberated areas, agency says
EAM Jaishankar dials envoys in US, Canada after 4 Indians freeze to death along US-Canada border
Balkan Shipbuilding Yard in Turkmenistan to build new ships
Uzbekistan shares domestic COVID-19 data for Jan.21
Azerbaijani oil prices decline
Azerbaijan talks probability of commercial oil & gas reserves at Aypara area in Caspian Sea
GM sets $6.5 bln for in Michigan electric vehicle plants -document
Georgia – Turkey trade turnover up
Subhas Chandra Bose's family members welcome PM's decision on Netaji's statue at India Gate
Kazakhstan talks business support measures related to tax legislation
Iran resumes gas export to Turkey
Central Bank of Azerbaijan fully meets demand at foreign exchange auction
US commits to helping Saudi Arabia, Gulf partners defend against threats from Yemen
NYPD officer killed, another seriously wounded in shooting
Poland, Georgia to hold Joint Intergovernmental Commission meeting – ministry
Saudi-led coalition denies targeting detention centre in Yemen's Saada
Arnold Schwarzenegger involved in car accident
Germany's minimum wage hike will not cost jobs - labour minister
Canadian tourist killed, 2 others wounded in Mexico resort shooting
Iran says gas flows to Turkey resume after being cut due to technical fault
Student shot at Maryland school, suspect in custody
France: Former aides to ex-president Nicolas Sarkozy jailed for opinion poll fraud
WHO recommends reduced dose Pfizer COVID vaccine for under 12s
Islamic State jailbreak in Syria, army barracks attack in Iraq leave at least 39 dead
U.N. chief condemns deadly Saudi-led coalition strike in Yemen
Amirabdollahian: new chapter in Iran-Russia ties to unfold
Trade turnover between Uzbekistan and Azerbaijan increases
Dozens killed in Saudi-led coalition air raid on Yemen prison
Price of fuel and lubricants in Kyrgyzstan increased by 70% over past year
Airbus cancels Qatar Airways order in escalating dispute
Turkey wraps up in-person semester with success against pandemic
Azerbaijan may toughen punishment for domestic violence
Azerbaijani Xalq Bank's profits increase
Azerbaijan names most profitable non-oil fields in terms of tax revenue growth
Kazakh oil and gas company to purchase variable speed drives
Кazakh Electricity Grid Operating Company opens tender to buy hydraulic press
Turkmenistan-Belarus trade turnover fell in 11M2021
Crime rate in Azerbaijani Armed Forces decreases - military prosecutor general
Size of consumer market in Azerbaijan increases - minister
Price indexes of financial, trade sectors at Uzbek stock exchange rise
Government focuses on subsidizing production rather than import – Azerbaijani Cabinet of Ministers
Azerbaijan is one of countries with best conditions for training - Australian gymnast
Azerbaijan's parliament discusses lifting of visa regime with Serbia
European Azerbaijan School hosts return of World Scholar's Cup to Baku (PHOTO)
Uzbekistan and Oman eye joint projects in transport sector
Schlumberger's profit jumps as higher oil prices spur drilling demand
Kazakhstan to strictly fulfill all investment obligations - President Tokayev
Global inflation crisis intensifying: what will Azerbaijan do?
Kazakhstan needs new tax policy - president
Georgia’s main oil exporters disclosed
Uzbekistan discloses level of assimilation of investment in fixed capital
Kazakhstan’s banking sector sees increase in total assets
Uzbekistan sees increase in volume of foreign trade turnover for 2021
Turkmenistan-Uzbekistan trade turnover increased in 2021
Iran eyes establishment of joint bank with China
Azerbaijan continues searching for servicemen gone missing during Karabakh war
UAE bourses end higher on financial, telecom boost
Kazakhstan's president orders to audit all local deposits
Turkmenhimiya opens tender to purchase chemical products
Azerbaijan shares data on number of vaccinated citizens
Azerbaijan confirms 1,068 more COVID-19 cases, 551 recoveries
German health min sees possible tripling of COVID infections by mid-Feb
Kazakh government must develop new modern approaches to public-private partnership - president
Kazakhstan unveils its TOP-3 trade partners for 11M2021
Azerbaijan launches working group to prepare measures to combat inflation
Israel's defence chief isolates at home after positive COVID test
Former ambassador sentenced to 10 years in prison in Azerbaijan
Azerbaijani holding training session for reservists (PHOTO/VIDEO)
Rising influence of limited elite groups in Kazakhstan becomes serious security threat - Tokayev
Turkmen factory discloses construction materials production data
Azerbaijan enters new stage of strategic development - official
Georgia’s fuel prices remain relatively low
All news