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Extra Tax for Non-Banking Activities

Extra Tax for Non-Banking Activities Extra Tax for Non-Banking Activities

The punitive policy stipulated in the new law aimed at removing production barriers may put an end to business activities of commercial banks, Banker news website reported on Friday. Some economists believe that if banks are forced to pay extra tax for their non-banking business they would return to banking activities. The reports that banks are deeply involved in non-banking activities like the import of rice and other basic commodities by subsidized foreign currency have triggered criticisms among economists. “Banks can invest their revenue in the banking sector, but they are now investing in other industries,” Abbas Vafadar, a Tehran University lecturer, said. The academic further warned that the possibility of corruption in such activities is very high, as banking resources can easily come for help when a bank-owned enterprise faces trouble. He hoped that the new regulations aimed at removing production barriers help redress the situation, saying, “Under the new rules, enterprises owned by banks are taxed higher and this punitive policy may force banks to sell the enterprises dealing with non-banking activities.”

 

Financialtribune.com