Page 67 - IRANRptOct22

Iran’s economy ministry looks to raise $600mn from property auctions
missed as vested interests made efforts to dodge the tax.
The Raisi government, in power since last year, has begun a new round of mass homebuilding in an effort at addressing the stark housing shortage.
The price of each square metre of land in Tehran, meanwhile, increased from Iranian rial (IRR) 300mn ($1,067 at the free market exchange rate) in August last year to over IRR350mn in March. An inability to pay such prices has forced many city inhabitants to move to faraway satellite towns, causing knock-on traffic problems when they commute to work or journey to the city for other reasons.
Around 2,500 residential and commercial properties with an officially estimated value of approximately $600mn are to be auctioned by Iran’s economy ministry in a bid to raise funds for the government, Tehran’s Financial Tribune has reported.
Some of the property assets, dating from before Iran’s 1979 revolution, are available because of mergers between ministries over the years that left office space free. In central Tehran there are such buildings that have been left empty for decades. Only in the past decade have there been significant sales of abandoned buildings of this type to private developers. The developers mostly look to turn them into luxury flats or business centres.
“These properties have been recognised as excess and are ready for sale, and have all the legal ownership documents,” Fateme Dadgar, a spokeswoman for the economy ministry was quoted as saying by news portal shada.ir, in reference to all the assets to be auctioned.
The economy ministry has plans to raise close to Iranian rial (IRR) 1,000tn ($3.5bn at the free market exchange rate) in all from property sales nationwide and equity to be sold on the stock market, the official added.
However, successive Iranian governments have struggled to offload old assets to the private sector due to overpricing of estate. According to the Supreme Audit Office, both the former Rouhani government, which was in power for two terms until the summer of this year, and the Raisi administration, which came into office in August, have struggled in selling off assets, with government departments unwilling to play ball.
9.1.10 Metallurgy & mining sector news
Iran’s coal concentrate output up one fifth in first five Persian months
Iran’s production of coal concentrate expanded by 19.8% y/y to 817,100 tonnes in the first five months of the Persian calendar year (March 21 to August 22), IRNA has reported, citing data released by the Ministry of Industry, Mining and Trade.
Iran has large deposits of coal in its northern and central regions. The most extensive amounts are found near Semnan and Tabas.
Iran’s average annual coal concentrate output volume stands at around 1.5mn tonnes. Annual domestic demand exceeds 2mn tonnes. The commodity is mostly used in power generation.
Iranian coal mines are tax-exempt. Also, miners who purchase mining equipment and machinery can use tax exemptions and conduct a transaction at a reduced dollar rate.
Currently, Iran's coal sector provides employment for around 17,000 people. Official data lists 185 small and large coal mines in the country, with 59% of the mines currently operating. Ten are being equipped and prepared for operation. The remainder are idled or bankrupt.
67 IRAN Country Report October 2022 www.intellinews.com