Iran Parliament rejects subsidy bill withdrawal

Iranian lawmakers on Sunday rejected a request by the government to take back legislation to cut food and energy subsidies, which has yet to win the full approval of Parliament.

With a 17-article plan dubbed ‘the Economic Reform Plan’, President Ahmadinejad believes his government would save up to 30 percent of its annual budget by cutting back on subsidies on gasoline and other refined products, natural gas, electricity, water, food, health and education.

The government would then distribute a portion of the recovered revenue among lower income citizens.

Lawmakers have approved the broad outlines of the proposal, but seek changes in a key part of it, urging the president to channel the money saved by the bill into a special account for public spending.

They also say all Iranians must receive compensation for higher food and energy prices, not just the low-income families.

In response, President Ahmadinejad sought to withdraw the proposal entirely. The demand was put to vote in Parliament on Sunday but fell short of two votes, Mehr News Agency reported.

At least 120 lawmakers of the 243-seated Parliament agreed to send back the proposal while 111 opposed and 7 abstained, the report said.