Iran’s tax revenues increase by 52%

Business Materials 6 December 2014 14:43 (UTC +04:00)

Baku, Azerbaijan, Dec. 6

By Umid Niayesh - Trend:

Iran's tax revenues has increased by 52 percent during the first eight months of the current Iranian fiscal year (March 21-Nov. 22) compared to the same period of preceding year, head of Iran's tax organization, Ali Askari said, the country's Mehr news agency reported Dec. 6.

Askari did not unveil the exact figure of the administration's tax incomes.

He said that the predicted tax revenues have been materialized by 95 percent during the mentioned period.

The country's value-added tax (VAT) incomes also have increased by 80 percent in comparison with first 8 months of last Iranian fiscal year, Askari said.

The VAT incomes have been realized by 94 percent during the period, he added.

The official said that tax revenues will account for 700 -720 trillion rials (about $26 billion based on official rate of 26,936 rials per each USD) of the country's total budget in the next fiscal year (will start on March 20, 2015).

Iran's tax revenues (about $21.29 billion) account for 34 percent of the country's total budget in the current fiscal year, which is 18 percent more than the previous year.

However, Askari earlier said that realization of the figure will be difficult considering the current taxation processes.

About 25 percent of the Iran's overall economy does not pay taxes, Askari said, adding that tax evasion is the main problem of the country's taxation system.

Earlier Iranian Economy Minister Ali Tayyebnia said that tax evasion in the country should be dealt with.

"We are planning to increase tax incomes, not through raising charges, but through preventing tax evasion," Tayyebnia added.

"The goal will be achieved through establishing a comprehensive databank on tax affairs," the minister said.