Business And Markets

Tax Income From Stock Trade Plummets 65%

Steep decline in taxes from the share market is linked to investors’ aversion to participate in the stressed market following the historic collapse in the summer of 2020
Tax Income From Stock Trade Plummets 65%
Tax Income From Stock Trade Plummets 65%

As stocks stumble government income from taxes on share trade dropped sharply in the first three quarters (March 21-Dec 21) of the current fiscal year compared to the same period last year.  
Data published by the Central Securities Depository of Iran show income plummeted almost 65% to 45.72 trillion rials ($163 million), almost a third of the amount a year ago. 
Taxes on share transactions in the first nine months of last fiscal year reached 134.12 trillion rials ($479m) thanks to the unprecedented stock market boom, particularly in the first half of the year when millions of new investors rushed to the bourse.  
Known as financial transaction tax (FTT), tax on stocks is levied on buying and selling a stock, bond, or other financial contracts like options and derivatives. 
The government’s tax revenues consist of returns from “direct taxation” and “tax on goods and services”. Direct taxes include three groups of “tax on legal entities”, “income tax” and “wealth tax”. Tax on stocks falls under the wealth tax category. 


Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Add new comment