Page 23 - IRANRptJul18

Accrued direct income tax stood at IRR456tn ($10.1bn), while collected VAT reached IRR354tn ($7.86tn) during the 11-month period.
According to the latest data, some 86% of the estimated taxable income of the current Persian year of 1396 (2017/2018) has been accounted for, the INTA said.
Iran’s Minister of Economic Affairs and Finance, Masoud Karbasian, noted that in the previous Iranian year (2016-17), income from oil sales had fallen to 34% of all income flowing into government coffers.
Iran is attempting to transition from having an oil-based economy to an economy with a substantially more mixed basket of income sources. The vulnerability of an economy dependent on oil prices was demonstrated for several years running until mid-2017 when the price of only oil hovered around $50 a barrel.
Karbasian said Iran's tax as a percentage of GDP ratio improved to 8% in the 2016-17 Persian year in comparison with the 4.5% in the fiscal 2012-13, the Financial Tribune r eported.
6.1.2 Budget dynamics - funding, privatisation
The Iranian Privatization Organisation (IPO) has announced that more than 630 companies will enter the privatisation process within the next few weeks, in a block sale bid to shift latent manufacturing potential into the private sector, the Tehran Times reported on May 30.
The IPO has previously published a list of state enterprises and significant holdings in a bid to attract private sector investment. Those companies and holdings that have not attracted any substantial interest have been relisted. The IPO said it had transferred IRR380bn ($904mn) worth of state-run shares to the private sector in the first two months of the Persian calendar year (March 21-May 21).
Company stakes listed in the block sale include those of livestock firms , industrial firms, insurance companies and Iran National Public Trading Corporation. Auctions will commence over the next few weeks.
Also, the IPO is set to list an additional 21 state-owned assets on the Tehran Stock Exchange (TSE) and Iran Fara Bourse (over-the counter) by June 21.
The continuing divestiture of assets comes with the government aiming to counter the ongoing capital flight from the country brought about by Iran’s difficult political and economic circumstances much shaped by the US decision to exit the nuclear deal and reimpose heavy sanctions.
6.2 Debt
Iran - Gross external debt 2010 2011 2012 2013 2014 2015 2016 2017
External debt (USD bn)
20.030 17.344 7.406 7.006 5.441 6.322 7.475 8.481
External debt (% GDP)
4.281 2.929 1.258 1.366 1.277 1.577 1.9 2.0
Source: World Bank, CEIC
23 IRAN Country Report July 2018 www.intellinews.com