Iran Tax Revenues at $19 Billion

EghtesadOnline: 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.

News ID: ۷۸۰۸۲۸

13 December 2017

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, Financial Tribune quoted Taqavinejad as saying.

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”.