Domestic Economy

Commission Drafts Bill to Cut Production Tax by 5%

The proposed decline in tax on the production sector comes, as Mohammad Baqer Nobakht, the head of Plan and Budget Organization, announced that "tax on consumption will increase next year"
Commission Drafts Bill to Cut Production Tax by 5%
Commission Drafts Bill to Cut Production Tax by 5%

Majlis Joint Commission, a parliamentary body responsible for reviewing the budget bill as well as the five-year economic development plans, has put forth a bill that would reduce tax on production from 25% to 20%. 
According to Mojtaba Rezakhah, a member of the commission, only 29% of government resources in the budget bill of the next fiscal year (March 2021-22) are considered sustainable revenues, such as income tax and the rest have been projected to come from sales of bonds and oil. 
“At the Joint Commission, are trying to increase the share of sustainable revenues to 50%. The main goal is to increase tax on the rich, profiteers and importers. Majlis took a revolutionary step and approved tax on luxury cars; people must help the economy in proportion to their wealth. Production should not be pressured by tax; increasing the value added tax rates is not reasonable either,” he was quoted as saying by Fars News Agency. 


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