Economy, Domestic Economy

Iran Tax Revenues at $19 Billion

Tax Revenues at $19 Billion
Tax Revenues at $19 Billion

As much as 1,000 trillion rials ($23.8 billion) had been projected as tax revenues in the current fiscal budget (March 2017-18), more than 85% of which (around $19 billion) were realized in the eight months to Nov. 21, the chairman of Iranian National Tax Administration said.

Kamel Taqavinejad added that over 1,050 trillion rials in tax ($25 billion) have been projected in the next year's budget bill, about 5% more than the current year’s budget, Fars News Agency reported.

Electronic businesses account for 2-3% of Iran’s gross domestic product (compared with the average global ratio of 14%) at present and the tax administration is seeking to collect tax from e-businesses that are subject to taxation.

"Certain challenges are in the way of tax authorities in this regard, including the concept of their permanent office, Taqavinejad said.

Mohammad Reza Pour-Ebrahimi, the head of Majlis Economic Commission, said tax revenues will be the backbone of next year’s budget.

Iran's average tax-to-GDP ratio stands at around 8%. Iranian economist Saeed Leylaz believes tax revenues would become a dependable source of income for the country, if they increase to 12% of the gross domestic product in three to four years to reach 1,500 to 2,000 trillion rials ($37.5-50 billion) per annum.

Tax revenues consist of returns from direct and indirect taxation. Direct taxes include three groups of “tax on legal entities”, “income tax” and “wealth tax”.

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