Page 24 - IRANRptAug19

Iran by the US. In dollar terms, the average salary in Iran in January, prior to the onset of the currency woes, worked out at around $750 per month, compared to the $180 it is worth now.
The Rouhani Administration is under immense pressure to alleviate some of the pain felt amid the economic turmoil and recession triggered by the sanctions, which have also effectively cut off the country from the international banking system, despite Washington’s claims that the sanctions are "targeted".
The government has been under pressure to award mid-Persian year salary increases, but fixed annual budgets set months in advance make that a complicated proposition. To partly get around the issue, some state employees have been given gift vouchers, free or reduced dental and medical insurance and food packages including rice and other staples.
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
Iranians spending IRR100tn on cigarettes annually academics say
The latest data provided by the Central Bank of Iran (CBI) shows that the government tax office earned some IRR2.6tn from cigarette taxes during the first seven months of the 2018/2019 Persian calendar year (March 21 – October 22). This suggests that in the past year, the government earned an extra 34% y/y.
At the turn of the current Iranian year (March 21, 2018), the Rouhani administration increased the income from tax on cigarettes by IRR75 (€0.004) per pack.
The number of smokers in Iran is not known, while the government also does not have figures on those smoking smuggled cigarettes or on how much tax it loses because of this illicit part of the market.
The tax office and police have stepped up efforts to clamp down on the import and distribution of smuggled and counterfeit cigarettes in the past year.
The increase in revenues over the past year is partly seen as stemming from efforts made to stop smuggled cigarettes coming into the country via routes
24 IRAN Country Report August 2019 www.intellinews.com