Iran Tax-to-GDP Ratio at 4.2%

The ratio of tax revenues government gained in the last fiscal year (March 2019-20) to GDP (when current prices are used) stood at 4.2%. 
A total of 1,410 trillion rials ($5.52 billion) were gained from taxes last year, of which 820 trillion rials ($3.21 billion) came from direct taxes and 590 trillion rials ($2.31 billion) from tax on goods and services. 
The ratio of tax revenues to operating budget stood at 41.4% and to general expenditure at 32.7%, Fars News Agency reported. 
According to the Sixth Five-Year Development Plan (2017-22), the ratio of tax revenues to GDP is targeted to reach 8-10%.
Noting that the tax-to-GDP ratio in Turkey is at 24%, the US 30%, Germany about 50% and in OECD countries at 35%, Hossein Abbasi, a lecturer in the Department of Economics of University of Maryland, said the relatively low rate indicates that a big part of the Iranian economy does not pay tax.