Page 32 - IRANRptNov21

Iran’s draft budget skips parliamentary scrutiny as coronavirus means legislature cannot be convened
Iran’s budget deficit at 9.5% in 2020
agreement is by no means guaranteed as things stand, but if it was achieved it could open the way for Iran to build up oil export sales to as high as 2mn b/d within around two years.
Traditional parliamentary scrutiny in Iran of the country’s draft state budget has been skipped in favour of sending it straight to the Guardian Council for approval given that 23 MPs have fallen ill with the coronavirus, the Financial Tribune daily has reported.
Asadollah Abbasi, spokesman for the presiding board of the parliament, reportedly explained that the virus outbreak meant that, as per Article 85 of the Iranian Constitution, the draft budget for the 2020/2021 Persian calendar year (which commences on March 20) should be moved on to the executive body once it became clear the legislature could not be convened.
The 12-member Guardian Council—made up of Islamic Law experts selected by the supreme leader of Iran and six jurists selected by the parliament from among jurists proposed by the head of the Judiciary—has 20 days to review the budget bill from March 3, according to Abbasali Kadkhodaei, its spokesman.
The draft budget as it stands does not take into account the loss of income to the state from the closure of businesses in the country caused by the coronavirus epidemic.
The Central Bank of Iran (CBI) estimated that Iran hit a government budget deficit of nearly 9.5% in 2020 from a 5.5% deficit in 2019. The International Monetary Fund (IMF), meanwhile, has also calculated that Iran's total budget deficit would be around $58bn.
6.1.1 Budget dynamics - tax issues, revenues
Tax evasion in Iran tops $4bn
The head of the Iranian Tax Office has admitted that tax evasion in the country has topped IRT100tn ($4bn), according to IBENA on June 7. Tax evasion in Iran has been a perennial problem in the country as both private and government sector organisations and companies avoid their fair share of tax payments. The Rouhani government in its first term attempted to give the tax office more powers including allowing them to investigate the spouses and children’s accounts of CEOs of companies.
Omid Ali-Parsa, head of the Tax Office, has said at least half of the large tax
32 IRAN Country Report November 2021 www.intellinews.com