TEHRAN -- Minister of Energy Habibollah Bitaraf said that tax revenues constitute only 30 percent of the government budget. Speaking on the threshold of Tax Week, he told IRNA that in many countries tax revenues are the most important source of earning for the government budget, "but, unfortunately in Iran the role of taxes is overshadowed by being part of the financial structure of the government."

Bitaraf referred to Iran's current and development budget, adding the tax revenues are less than 50 percent of the current government budget.

He said the Third Five-Year Development Plan (March 2000-March 2005) is on the right track in determining the appropriate role for tax revenues in the budget.

He also said reform of the structure of tax collection, revamping direct taxation laws and greater transparency in the private and public companies revenues are all important steps that should be carried out.

Bitaraf said the development plan envisions doing away with tax exemptions which is a good tool in a competitive and non-subsidized economy in making tax revenues more real and transparent.

"Tax exemptions for electricity companies have already been revoked," Bitaraf noted.