Iran’s taxing system suitable for tax evasion

Business Materials 22 June 2015 16:47 (UTC +04:00)

Baku, Azerbaijan, June 22

By Umid Niayesh - Trend:

Tax evasion will continue in Iran until Iran 's taxing system is reviewed, head of Iran 's tax organization, Ali Askari said.

About 20 to 25 percent of the Iran 's overall economy does not pay taxes, Askari said, adding the figure accounts for some $10.3 billion annually (based on official rate of 29,159 rials per each USD).

On the other hand some 40 percent of Iran 's GDP is tax-free legally, Askari said, Iran 's official IRIB news agency reported June 22.

He further said that one of the most common methods for tax evasion in Iran is smuggling.

"Those who import goods via by-passing the customs are disrupting the country's economic balance," Askari said.

Back in 2011 former Iranian President Mahmoud Ahmadinejad accused the Islamic Revolutionary Guards Corps (IRGC), claiming the IRGC uses its military ports to smuggle cigarettes.

"All illegal borders must be closed. It is not acceptable to say it belongs to such-and-such institution or organ. Each one of them has opened a hole in some corner and is importing and exporting things at will," Ahmadinejad said in its famous statement, adding if the goods are related to security, intelligence or defense... they can still be brought in through legal borders.

Askari further touched upon the country's tax revenues saying Iran's tax incomes accounted for $2.9 billion during the fist two month of the current Iranian fiscal year (March 21-May 22).

The official said that tax revenues will account for $26 billion by the end of current fiscal year (March 21, 2016), which is 30 percent more compared to preceding year.

Askari forecasted that predicted tax revenues would materialize by 95 percent.

Iran's tax revenues accounted for $19.7 billion during last fiscal year (ended on March 21).

Edited by CN

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