Page 31 - IRANRptFeb22

6.1.1 Budget dynamics - tax issues, revenues
Evasion ‘costing Iran’s tax authority sum equivalent to $4.5bn, around half its revenue’
Tax evasion is costing the Iranian National Tax Administration (INTA) an estimated Iranian rial 1,350 trillion ($4.5bn at the free market exchange rate), or around half its annual revenue. That’s according to INTA chief Davud Manzur who this week outlined how the government is continuing to fund new data systems that should enable officials to go after many more tax cheats.
The draft state budget for the next Persian calendar year (starts March 21, 2022) currently progressing through parliament, meanwhile, not only includes financial provisions for improved information technology, it also targets sweeping taxes at owners of luxury properties, including homes that are worth over IRR 100bn (around $330,000).
Manzur said INTA was readying the data banks would need to enforce the new taxes from early March. Additionally, he noted that a previously announced tax to be imposed on owners of homes kept vacant would soon go into effect using data to be submitted by the housing ministry.
Expanding taxation revenues is in line with the government’s efforts to diversify the economy away from crude oil export revenues. Officials are also mindful of offsetting financial impacts of US sanctions on the economy.
INTA said its tax receipts for the Persian calendar year that ended in March 2021 amouned to IRR 1,920 trillion ($7.6bn based on the exchange rate at the time).
6.1.2 Budget dynamics - funding, privatisation
Iran ‘scraps plans to sell holdings in largest petrochemical company PGPIC after receiving just one bid’
Iran’s government has scrapped plans to sell holdings in the country’s largest petrochemical company, Persian Gulf Petrochemical Industries Corporation (PGPIC), citing a lack of sufficient bids, Press TV reported on January 22.
The Iranian Privatization Organization reportedly confirmed the cancellation in a letter sent to Iran’s stock exchange authority.
The government previously said it would sell PGPIC shares amounting to 18% of the company’s equity in three separate listings.
The letter from the privatisation authority was reported as stating that just a single bid for the largest block of shares in PGPIC, equivalent to 15% of the equity, was received. The offered price was said to have been deemed too low by privatisation officials.
31 IRAN Country Report February 2022 www.intellinews.com