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the list of recipients. Businesspeople earning more than $10,000 annually were among those initially targeted, along with MPs, high-ranking government officials, dentists, doctors and retired army generals on pensions exceeding a certain amount.
The severe devaluation of the Iranian rial over the past two years, by more than 50%, cut the overall subsidies bill for the government.
Earlier this year, the​ ​Iranian government announced​ ​it had begun rationing of fuel in a bid to conserve stocks and to counter smuggling. Under the plans, less subsidised fuel will be available at IRR30,000 ($0.21) per litre. That would still, however, make gasoline one-fifth less expensive in Iran than in neighbouring Iraq and Kuwait. The price in Turkey is $1.34 per litre. Subsidised petrol in Iran is available to all people that have bought cars produced in the country.
The low fixed price of petrol has driven​ ​consumption up year by year​, ​despite the Rouhani administration’s efforts to wean Iranians off motor fuels with incremental price rises. According to the government’s statistics, some 90mn litres of petrol are consumed daily by Iranians, while some 10-20mn litres illicitly leave the country every day.
According to Iran’s budget for this year, one third of the government’s income, or 1,425 trillion rials ($33.9 billion), should come from oil and gas exports.
The budget was based on a forecast crude oil price of $50-$54 per barrel and a US dollar rate of 57,000 rials, meaning the Iranian economy could remain sustainable if exports came to at least 1.5 million bpd.
EU officials also estimate Iran needs to sell 1.5 million bpd to keep its economy afloat. A drop below 1 million bpd could bring hardship and economic crisis.
6.1.1​ Budget dynamics - tax issues
Iranian government earns €92mn from duties paid under mobile phone registry scheme
The Iranian government has said it earned IRR13 trillion (€92mn at the unofficial exchange rate) from duties paid on imported phones declared under the mobile registry scheme brought in last year to stamp out black market handsets, afkarnews.com reported on October 9.
Action was taken after concern mounted over “suitcase imports” of mobile phones brought into the country from regional markets including Dubai, Kuwait and Azerbaijan.
30​ IRAN Country Report​ November 2019 www.intellinews.com