Tax, main source of income in absence of oil: fin. min.

July 7, 2020 - 15:21

TEHRAN - Iranian Finance and Economic Affairs Minister Farhad Dejpasand said on Tuesday that the government considers tax as the main source of income for managing the country’s economy in the absence of oil revenues, the ministry’s news portal Shada reported.

“Currently, the most important method of financing for the country's economic management is taxing, and this has placed a huge burden on the tax administration,” Dejpasand said in a statement on the occasion of national tax day.

Taxes are the safest, healthiest, and most sustainable source of income for the government, and with proper planning, these revenues can have a positive impact on the country’s sustainable development, the official said.

Strengthening the economy against external shocks and threats, eliminating social inequalities, equitable distribution of wealth in society, and increasing welfare, prosperity, and security were also mentioned by Dejpasand as the benefits of tax incomes.

As the oil sale accounts for just seven percent of the country’s income in the current Iranian calendar year (began on March 20), the revenues gained from elimination of hidden energy subsidies as well as increased tax incomes will replace oil revenues, according to Head of Iran's Planning and Budget Organization (PBO) Mohammad Bagher Nobakht.

“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,” the official had said in late November 2019.

EF/MA

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