60947
As many as 500,000 taxpayers, including major producers and importers, pay around 150 trillion rials ($3.96 billion) in value added tax every year.
As many as 500,000 taxpayers, including major producers and importers, pay around 150 trillion rials ($3.96 billion) in value added tax every year.

Parliament Votes to Extend Value Added Tax Law

Parliament Votes to Extend Value Added Tax Law

Legislators on Sunday extended the enforcement of value added tax for the upcoming fiscal year (starting March 21) and dropped the newly-proposed article narrowing the tax base to the final consumer.
On Saturday, Minister of Economic Affairs and Finance Ali Tayyebnia and Chairman of Iranian National Tax Administration Seyyed Kamel Taqavinejad voiced concerns over replacing VAT with consumption tax, saying the move would lead to the loss of close to 400 trillion rials ($10.58 billion) in revenues, IRNA reported.
Tayyebnia said as many as 500,000 taxpayers, including major producers and importers, pay around 150 trillion rials ($3.96 billion) as VAT every year.
“If consumption tax becomes law, tax authorities will have to deal with over 3 million retailers across the country,” he added.
VAT is a general consumption tax collected incrementally, based on the value added at each stage of production or distribution, whereas the proposed consumption tax narrows the tax base to the final consumer.
Advocates of consumption tax believe the mechanism is simpler and more effective compared to VAT. They also argue that it will help improve transparency and prevent corruption.
Two main violations are usually reported regarding the implementation of VAT Law. First, some business owners charge VAT but do not pay the same to the government. Second, the government collects VAT but avoids paying the revenues to related bodies.
To prevent such violations, only the final consumer—the last point in a distribution chain—must be charged consumption tax, according to a report recently published by the Persian daily Shahrvand.
According to INTA chief, VAT accounts for 50% or 1,700 trillion rials ($45.04 billion) of government revenues.
“INTA pays over 600 trillion rials of VAT revenues to municipalities and 50 trillion to the Health Ministry for the Healthcare Reform Plan,” he added.
The VAT Law took effect in the Iranian year to March 2009 and is being extended every year. VAT currently stands at 9% in Iran.

 

Short URL : https://goo.gl/NjT4jx
  1. https://goo.gl/VrWL7F
  • https://goo.gl/yNI4TL
  • https://goo.gl/vnpMUO
  • https://goo.gl/a2wXDl
  • https://goo.gl/2ZaIHF

You can also read ...

Iran Receives First Round of Post-Sanctions Finance From European Banks
In what were the first finance deals clinched with cautious...
Indian Bank to Extend $150m for Chabahar Development
Iran is expected “very soon” to approach India’s Exim Bank...
TEDPIX soared by 3,459 points or 4.2% during the sixth month of the year–the highest monthly rise recorded so far this year.
Tehran Stock Exchange’s primary index TEDPIX gained 8,346.3...
68% of Non-Oil Exports Headed to 5 Countries
China, Iraq, the UAE, South Korea and India imported 68.7% of...
Gold Coin Hits 3-Week Low
Gold coin prices are modestly down and hit a three-week low in...
The world’s 67 steelmakers produced 1.21 billion tons of crude steel during the eight months, up 4.9% YOY.
Iranian steel mills produced 13.44 million tons of steel from...
Flat Steel Import Market Cools as Domestic Prices Drop
Import prices for flat steel materials cooled down in Iran in...
51.5% Rise in University Graduates
The findings of the most recent National Population and...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus