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Rouhani’s draft budget for non-state enterprise expenditures is up 6% on last year’s budget but has been tabled with inflation running at almost 10%. The proposed budget in its entirety amounts to 11,929 trillion rials ($337bn).
Rouhani said in a speech carried live by state TV that the budget would help the country work towards full employment, eliminate poverty and deliver social justice. It must also address a building Iranian banking crisis.
The draft budget also includes provisions for bringing all poor families to a minimum standard of living through a new social security programme. On the other hand, it should see some 30 million Iranians cut from a basic welfare provision introduced under the former Ahmadinejad administration.
6.1.1 Budget dynamics - tax issues
Iranian tax revenues up 10% y/y in 4-month period
Iran’s tax revenues rose by 10% y/y in the first four months of the current Iranian year (started March 21), translating to growth of IRR300tn, tax inspectors have told Iran Labour News Agency.
Tax authorities have been given reinforced powers in recent years with the Rouhani administration attempting to claw back cash from businesses used to avoiding their fair share in contributing to the national coffers. In 2015, the government announced tax inspectors had been granted the legal right to check the bank accounts of family members of business owners under investigation.
Kamel Taqavi-Nejad, director of the National Tax Administration, was cited by the news agency on July 30 as saying that authorities had stepped up investigations into suspect taxpayers in recent years and had forced businesses in the country of 80mn to enhance their transparency.
“With the economy ministry’s help, we plan to spot citizens who are not currently paying up. We'll be further tackling tax evasion while also offering a streamlined electronic portal for taxpayers,” he reportedly said.
Taqavi-Nejad added that by the end of the last Iranian fiscal year (it arrived in April), some 4.86mn tax returns had been filed digitally.
In the previous fiscal year, IRR531.5tn was paid into state coffers, an increase of 7.5% y/y.
23 IRAN Country Report August 2018 www.intellinews.com