TEHRAN- Iran’s oil sale will account for just seven percent of the country’s income in the next Iranian calendar year (begins on March 20, 2020), according to Head of Iran's Plan and Budget Organization (PBO) Mohammad Bagher Nobakht.

The official said on Tuesday the government eyes to generate $10 billion-$12 billion from direct sale of oil next year, Press TV reported.

Nobakht has previously said that the revenues gained from elimination of hidden energy subsidies as well as increased tax incomes will replace oil revenues. 

“This does not mean a rise in tax income; but by setting new tax bases and eliminating unnecessary exemptions at a time of economic warfare, more tax revenues will be provided,” he explained.

Also back in October, the official had said that Iran is going to allocate all revenues from oil sales to the development projects following structural reforms in the next year’s budget bill.

Oil revenues are generated from selling the country’s capital assets and should be spent on augmenting capital assets such as development projects, Nobakht said.

MA/MA