Page 28 - IRANRptAug21

Iran’s budget deficit at 9.5% in 2020
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 bel 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 evasion in the country is direct tax evasion while the other half is related to tax arrears.
He said that some IRT37tn was lost due to insufficient infrastructure and staffing issues able to chase the tax evaders.
Ali-Parsa made the statement following Farhad Dejpsand, the Minister of Economy of Iran, saying that the amount of realisation of tax revenues last year (1399) was about 108%, which "this figure was 8% more than the owed amount.”
6.1.2 Budget dynamics - funding, privatisation
Iran to issue sukuk worth up to $217mn to fund oil and natural gas projects
Iran is planning to issue sukuk securities worth up to $217mn to fund oil and natural gas projects, the country’s official energy news portal SHANA reported on May 2.
Vice President Eshaq Jahangiri reportedly signed off on the decision to ahead with the issuance, authorised under the annual state budget. It will permit the oil, energy and industry ministries to issue sukuk—Islamic sharia-compliant bonds—with a value of up to Iranian rial (IRR) 35 trillion ($217mn at the free market exchange rate).
28 IRAN Country Report August 2021 www.intellinews.com