Iran's Q1-3 Tax Earnings Surge by 60%

Contributing sentiments towards policy:

63% : The low ratio of tax to GDP in Iran is alarming because it is one of the main indicators of economic development.
61% : Official statistics show that of the 1,390 trillion rials ($4.68 billion) in tax income during the first half of the current year (March 21-June 21), 870 trillion rials ($2.93 billion) were gained from direct tax and the rest came from tax on goods and services.
55% : The government is looking to substantially increase its earnings from taxation in the upcoming fiscal year (to start March 21).
55% : Of the direct tax income, 33.1% came from tax on real entities, 25.1% from income tax and 4.6% from inheritance tax.
54% : Referring to the sub-sections of direct tax revenues, the official said, taxation of legal entities generated 560 trillion rials ($1.89 billion) during the period, indicating a 27% growth year-on-year.
53% : Noting that the tax income was above the budgetary target for the period, Mohammad Masihi added, "We expect the figure to reach 2,700 trillion rials [$9.09 billion] by the [fiscal] yearend [March 20, 2022]
53% : A total of 395 trillion rials ($1.33 billion) in income tax were collected as well, registering a 36% year-on-year rise.
53% : The respective shares of direct tax and tax on goods and services in total tax revenues stood at 62.8% and 37.1% in H1.
52% : According to Masihi, the government earned 107% of the estimated budgetary income from taxation in the last fiscal year.
52% : According to a letter by the Iranian National Tax Administration to the Islamic Republic of Iran Customs Administration, food and agricultural products categorized under sections 1, 3 and 5 of Article A of Value Added Tax Law, namely all unprocessed agricultural products, including horticultural products, medicinal plants, rangeland products, forest products (including timber), greenhouse crops (vegetables, cucurbits, flowers, plants and mushrooms), seeds, seedlings, pesticides and fertilizers, milk, cheese, yogurt, eggs, flour and bread, all types of meat and meat products, rice, pulses, soy and soy protein, edible oils (both vegetable oils and animal fats), baby formula, fertilized chicken egg and day-old chickens will be subject to a 9% value added tax as of Jan. 3, 2022.
51% : A total of 1,925 trillion rials ($6.48 billion) in tax were collected in the last fiscal year (ended March 20, 2021), indicating a 37% increase compared with the year before.
51% : This is while neighboring economies register up to 12-17% in tax-to-GDP ratio; the share increases to 30-35% in developing countries, suggesting that Iran's economy needs to achieve a 50% surge in this ratio to reach the average rate of tax-to-GDP among neighboring countries.
49% : He says the tax-to-GDP ratio in Iran currently stands at around 7%, ILNA reported.
49% : Therefore, the only way to achieve this goal under the current sanctions regime is by cutting tax exemptions of special institutions, whose former directors now hold posts in the new government and of course, and preventing tax evasion, according to the Persian daily Etemad.
49% : Except for Q2 of 2020-21, which registered a 13.5% decline in tax income compared with the preceding quarter, all other months saw a positive shift (but not necessarily an increase in tax revenues) compared with their previous months.
47% : Direct taxes include three groups of "tax on legal entities", "income tax" and "wealth tax".
46% : Q1 of the fiscal 2019-20 registered the lowest gains from taxation while Q2 of the current fiscal year posted the highest tax revenues.
46% : Experts have time and again demanded the decline in tax exemption of special institutions.
45% : However, fluctuations in the ratio of tax to the government's overall revenues and also to GDP remained uninspiring; they can fan the flames of instabilities and tax revenues remain unpredictable.
45% : The share of direct tax decreased while the share of tax on goods and services increased in H1 due to the fact that almost all economic activities faced restrictions during the first half of last fiscal year and consequently witnessed a decline in income.
44% : The official blamed the coronavirus pandemic and decline in transportation and fuel consumption for a 14% decrease in petroleum products' tax revenues and said INTA collected 60 trillion rials ($202.02 million) from taxation of petroleum products last year.
44% : (the research arm of the Iranian Parliament), said "most optimistic estimates put the volume of annual tax evasion in Iran at 1,000 trillion rials [$3.37 billion]", implying that the volume may be much higher.
41% : The method and level of taxation are different in other countries; for years, Iran has been wrestling with challenges, including tax evasion of high-income groups like doctors and lawyers.
37% : Notably, taxation of economic enterprises declined significantly in the fiscal 2020-21 due to the imposition of Covid-19 restrictions and repeated shutdowns.

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