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Tax Income Soars 63% to $7.5b

Tax Income Soars 63% to $7.5b
Tax Income Soars 63% to $7.5b

The government earned more than 2,700 trillion rials ($7.5 billion) in tax income during the current Iranian year’s first seven months (March 21-Oct. 22), according to the head of Education, Research and Planning Center of the Iranian National Tax Administration.
Mehdi Movahhedi was also quoted as saying by IRNA that the income was 63% more compared with the similar period of last year.
He added that tax income exceeded the budgetary target of 2,650 trillion rials ($7.3 billion) for the period by two percentage points.
Tax on legal entities exceeded 1,1200 trillion rials ($3.1 billion), which indicate an 88% year-on-year rise. This is while income tax was more than 465 trillion rials ($1.29 billion) to register a 48% YOY rise.
What’s more, over 97 trillion rials ($269 million) were registered as capital tax during the same period, which shows a 25% YOY rise.
The INTA official put the value of direct taxes at 1,690 trillion rials ($4.69 billion), saying the volume has grown 70% compared with that of the corresponding period of last year.
Movahhedi noted that INTA earned 1,018 trillion rials ($2.8 billion) in tax on goods and services during the seven months to Oct. 22 to register a 51% rise.
The Ministry of Economic Affairs and Finance recently announced new measures taken by the government, including connecting nine million point-of-sale (POS) terminals to the national taxation system and activating another nine million POS terminals. 
“As a result, the number of taxpayers increased by three million by August 22 … The number of tax declarations submitted to the Iranian National Tax Administration increased from three million to 4.5 million [more than a 50% rise] by July 22," he said.
The Comprehensive Taxpayers System, which is the main platform for the implementation of the law on shopping terminals, requires all sales and purchases to be registered in the form of electronic invoices.
The government says it aims to increase the share of taxes and reduce the share of oil revenues in the public budget, as the income from the sale of natural resources, including oil, gas and mines, is supposed to be spent on the development of the country instead of being injected into the current budget.
The Budget Law stipulates that social media influencers with more than 500,000 followers who generate income from commercial activities will be subject to income tax. 
Economy Minister Ehasan Khandouzi earlier communicated the directive on taxing influencers to the Iranian National Tax Administration,.
“For INTA, it is not important whether the owner of the bank account is a dairy seller, a celebrity, or an athlete. Artists will be exempt from tax if they earn less than 2,000 million rials [$6,000 per year]. All other celebrities who earn more must be taxed,” INTA chief, Davoud Manzour, said.
As per the new approach employed by INTA, whistleblowing on tax evaders and other tax violations will be incentivized. The whistleblowing guidelines were communicated to tax offices on Feb. 27. 
The public has been asked to log on to intamedia.ir and report tax schemes and evasions and enjoy a special reward.
 

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