ARDEBIL -- Head of Iran's Taxation Organization Issa Shahsavar Khojaste said here on Tuesday that value-added taxes (VAT) will be levied in the next two years, IRNA reported.

Khojaste said at a seminar on value-added taxes that approval of the bill on VAT by Majlis and implementation of the scheme are expected to result in taxation reforms in the country.

He said that VAT, which is the most advanced taxation scheme worldwide and is in effect in 120 countries, is also expected to turn into a safe and reliable source of income for government, and help raise production, fair distribution of wealth and administration of social justice.

He added that implementation of the VAT scheme might encounter complexities but ways to avert the adverse effects have been stipulated in the bill.

He rejected the claim that VAT is inflationary, citing global evidence to disprove this.

Economists say VAT would generate more income for the government, enabling it to cover its expenses.