Legislation to Help Sustain Municipal Revenues

Legislation to Help Sustain Municipal RevenuesLegislation to Help Sustain Municipal Revenues

The government is drafting legislation to provide sustainable means of revenue for municipal bodies. “We are determined to pass regulations on improving integrated urban management,” said Abdolreza Rahmani Fazli, interior minister, at the unveiling ceremony of 100 new urban buses on Friday in Mashhad, Khorasan Razavi Province, adding that “once passed, the bills will resolve many problems of cities.”

The bills are being drafted and under review by the metropolitan commissions. They will be considered by the government and placed before the Majlis (parliament) soon for enactment, IRNA reported.

As per the legislation, in addition to proceeds from dividends and resources owned by the municipality, and the rent and profits from the operation of municipal assets, every year 10% of charges received from issuance and renewal of passports and certificates, which are at present given to the Iran police force, will be transferred to the municipalities.

The government also wants to raise municipal revenue resources by providing 10% of the total earnings on passenger tickets for land, sea and air transportation across the country, and 8% of the revenue obtained from official documents registration as well as 60% of total traffic penalties collected.

 Urban Chaos

Fazli stressed the need “to bring order to urban chaos” through laws. The legislation to provide sustainable revenue sources for the municipalities will ensure “a bright future for cities to develop in a comprehensive and planned manner.”

The minister criticized those opposed to the bills, “who are stymieing government efforts” to pass the bills and said: “Municipalities are one of the most influential institutions in the country; but at present, they are faced with several problems due to financial constraints.”

In some regions, urban planning has not been consistent with scientific standards, he said, adding that “lack of proper communication between municipalities and urban development organizations is the main reason for urban chaos.”

In most metropolises today, excessive growth of population has led to a construction boom, as a result of which spatial chaos, lack of urban utilities, air pollution, traffic congestion, informal settlements, insecurity and social problems have emerged, leading to urban chaos.


Fazli said easy and equal access to municipal services like transportation, urban safety and security and promotion of justice and equity in civic planning are among the most important aspects of urban management the world over.

He pointed to the increasing urban problems in Mashhad including distressed areas and informal settlements, and said “if we don’t fix the problems now, we will face more challenges in the next decade.” Currently, 32% of the metropolitan population is living in informal settlements which have occupied around 13% percent of the urban area.”

Mashhad, with a population of 3.1 million, is the second most populous city in Iran and capital of Razavi Khorasan Province. It is located in the northeast, close to the borders of Turkmenistan and Afghanistan. It is home to the shrine of Imam Reza (AS), the eighth Shia imam.