Parliament passes bill to cut subsidies to millions of Iranians

Business Materials 12 April 2016 12:36 (UTC +04:00)

Baku, Azerbaijan, April 12

By Khalid Kazimov - Trend:

Iranian parliament members have decided to withhold cash subsidies for 24 million citizens whose annual income is over 350 million rials (about $11,500), or those who are considered "wealthy".

Iranian MPs reviewing the country's draft budget for the current fiscal year (started 20 March), passed the bill this morning, despite the administration's objection, Fars news agency reported.

The bill cuts the cash subsidies of traders, MPs, judges, fellow board members of universities and governmental workers who annually receive over $11,500 in salary.

The bill also affects Iranians residing abroad and the board members of governmental companies.

However, Mohammad Baqer Nobakht, Head of Iran's Management and Planning Organization said the bill is based on incorrect statistics, as the amount of people who receive $11,500 or over in salary is not 24 million, but 3 million.

The cash subsidies are monthly payments of approximately $15, paid to about 70 million Iranians.

According to latest reports, the country's economic inflation stands around 11 percent. Wages for the current year were increased by 14 percent.