Economy, Domestic Economy

VAT Law Extended

VAT Law ExtendedVAT Law Extended

Lawmakers have agreed to extend the pilot implementation of the value-added tax law throughout the next fiscal year that is to begin 21 March, IRNA reported on Wednesday. “The government will submit a final bill on VTA by the end of the current fiscal year,” head of Iran’s National Tax Administration, Ali Asgari, said, while representing the government in the parliamentary session which was held by the lawmakers to discuss details of the government’s sources of revenue in  the next budget. He added that the government’s total revenue from VAT will amount to about 270 trillion rials ($9.8 billion at the official exchange rate). The government recently announced that it has decided not to increase the VTA rate for the next fiscal year, despite the legal obligation stipulated in Note 2 of Article 117 of the Fifth Economic Development Plan that urges the government to increase the VAT rate by one percent every year so that it reaches 8% by the end of the plan (2016).