May 13, 2018 19:42

Tax Overhaul Underscored

The researchers propose the elimination of tax exemptions and recommend the collection of information on taxpayers’ bank accounts

Value added tax accounts for the lion’s share of total tax revenues in Iran with 23.5% and is followed by corporate tax and import tariff.

The findings of the research also show value added tax rate in Iran needs to increase from 9% to 15% and tax exemptions should decrease from 62% to 40%

Extensive tax exemptions granted to certain organizations and agencies in Iran have set the stage for numerous cases of tax evasion. This has consequently increased pressure on different economic sectors and led to a huge loss of revenues.
This was concluded by a research conducted by the Institute for Management and Planning Studies under the supervision of Special Presidential Aide for Economic Affairs Masoud Nili.
Iran’s taxation system is very inefficient and fundamental reforms are the prerequisites of any strategy for growth and development, the research was cited as saying by the Persian daily Etemad.
Two main functions of taxation are to prevent the collapse of market and redistribute resources.
Taxation is a tool to punish or encourage economic operatives while redistribution of wealth among different social classes is a major responsibility of governments.

Premium

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.

Tax Incentives