State Companies to Pay $444m in Tax

EghtesadOnline: Banks, companies and other organizations affiliated to the government must pay 57.8 trillion rials ($444 million) in tax in the coming fiscal year that starts in March 2020.

News ID: ۷۴۹۳۲۳

30 December 2019

As per projections in the annual budget for the next fiscal year, the tax figure is up 4.7% compared with 54.2 trillion rials projected for the current fiscal year, according to IRNA.

Accordingly, majority of taxes is to be paid by state-owned companies with 49.4 trillion rials, 5.6% higher than the tax they pay this year.

Likewise, state-owned lenders (including eight government banks) will pay 7.4 trillion and profitable institutions affiliated with the government are set to pay 8.4 trillion rials in tax next year, Financial Tribune reported.

Revenues

As per the draft budget, the state-owned companies, banks and profitable organizations are expected to earn 12,430 trillion rials ($95 billion), up 10,450 trillion rials in the outgoing fiscal year.

State entities include profit-making companies, namely the National Iranian Oil Company, National Iranian Oil Products Distribution Company, National Iranian Gas Company, Industrial Development and Renovation Organization of Iran and National Iranian Steel Companies are in the red.

A review of their financial records shows that some of them were loss-making, namely the regional water and electricity companies.

The income of state companies is set to rise from 9,320.6 trillion rials in the current year to 11,179 trillion rials ($85 trillion) --  up 20%.

State-run banks and profitable organizations are expected to make 1,164 trillion rials and 85.5 trillion rials next year, up  1,056 trillion rials and 76 trillion rials this year.

Bank Melli Iran- the biggest state-owned lender is seen to hold the largest share of income among state-owned lenders making 430 trillion rials.

Bank Sepah is next with 205 trillion rials and agri-bank is third with projected income of 182 trillion rials next fiscal year. Next on the list are Bank Maskan (housing lender), Bank of Industry and Mine, Tose'e Ta'avon Bank, Post Bank and Export Development Bank of Iran.

In the next fiscal year, general revenue (including revenues mainly from tax and exports at the disposal of the government) has been projected at 4,845 trillion rials ($37 billion as per the open market rate of USD 1=13,000 rilas).

The budget bill for the upcoming Iranian year was submitted to Majlis by President Hassan Rouhani on Dec. 8.