Tax income up 35% in 5 months on year

August 30, 2019 - 19:40

TEHRAN- Iran’s tax revenues increased 35 percent in the first five months of the current Iranian calendar year (March 21-August 22) from the same period of time in the previous year, IRIB reported quoting Finance and Economic Affairs Minister Farhad Dejpasand as saying.

Iran managed to collect 1.09 quadrillion rials (about $25.952 billion) of tax revenues during the past Iranian calendar year of 1397 (ended on March 20, 2019), showing that the country’s annual tax income plan has come true by 97 percent.

The country had planned to earn 1.13 quadrillion rials (about $26.904 billion) of tax incomes in the past year.

Direct taxes collected in the past year stood at 640 trillion rials (about $15.238 billion), showing that the planned figure has come true by 101 percent and also showing 15 percent growth year on year. 

The revenues earned from taxes on the goods and services were 450 trillion rials (about $10.714 billion), indicating that the planned figure has been materialized by 91 percent and also showing 11 percent rise year on year.

To minimize the effects of the U.S. renewed sanctions on the country’s economy, Iran is adopting some new economic approaches and the main important one is to reduce reliance on the oil revenues.

To materialize this objective, the country has put strengthening domestic production, boosting non-oil exports specially to the neighbor countries, and collecting taxes more systematically on top of its economic policies.

In early July, finance minister said that reducing the current year’s budget dependency on oil exports is the most important economic objective in the country; and his ministry is seriously following up defined tax policies to this end.

The proposed 17.03 quadrillion rials ($405 billion) budget bill for this Iranian year (started on March 21) has envisaged 1.53 quadrillion rials (about $36.5 billion) of tax income.

Dejpasand has also stressed that an efficient tax system should be a priority in the government’s policy making.

A non-oil budget requires other stable income sources.

In a message on the occasion of the National Day of Tax (July 7), finance minister stressed the necessity of planning for using stable non-oil income.

He wrote the sanctions should be considered an opportunity to reform the budget structure and to take the advantage of tax potential.

Also, in a separate message on the same occasion, Omid-Ali Parsa, the head of Iran’s National Tax Administration (INTA), wrote; “Establishment of an efficient tax system and reducing the budget reliance on oil income requires renewing the country’s tax system in all aspects.”

The official further underlined that lunching smart tax collection projects based on the comprehensive tax plan is a promising measure that INTA is taking to fulfill the pivot role of tax in the national economy during this year.

All such measures, while promoting the role of tax as an instrument for stability, transparency and economic justice, will lead to reduce the effects and pressures of sanctions on the country, the official underlined.