Electricity subscribers will have to pay 10% of the cost of their power consumption as tax in their electricity bills next year (begins in March).
The Majlis agreed on Wednesday to raise tax from the current 8% to 10%. Lawmakers also exempted rural residents and agricultural wells from the rule, ISNA reported.
As per law, subscribes are charged a fixed amount as tax. The money is received by Iran Power Generation, Distribution and Transmission Company, and in its entirety must be spent on renewables and expanding rural power infrastructure.
Up until now, taxes went to the treasury and the Management and Planning Organization was responsible for redirecting it to the Energy Ministry. However, the MPO spent part of the money elsewhere and as a result the ministry and Tavanir faced serious challenges financing expansion programs.
The Energy Ministry has also suggested increasing electricity tariffs for heavy consumers. A proposal to this effect has been approved by the Majlis Special Commission and if ratified by the government will come into effect in April.
Environmentalists and conservationists say higher electricity tariffs for those who exceed reasonable consumption limits are among the most effective ways to convince the public to consume prudently.
Economic experts say there must be a tangible difference between electricity tariffs so that the people feel the necessity to use power logically and avoid waste by putting off the lights.
