Iran govt. urged to enforce subsidy law

A senior Iranian lawmaker warns against government delays in implementing the targeted subsidies plan, saying the Parliament (Majlis) is closely monitoring the matter.

In early January, Majlis passed a bill proposed by the government of President Mahmoud Ahmadinejad which is aimed at distributing a portion of the revenues recovered from rolling back subsidies on fuel and some food items in the form of direct payments to low-income Iranians.

The government has undertaken to deposit the payments into accounts opened for individuals two months before the implementation of the plan to partially compensate for possible resulting price hikes.

“The government has not done much about implementing the targeted subsidies plan,” Mehr News Agency quoted Hassan Ghafourifard as saying on Wednesday.

“If this plan is not implemented by the end of September, Majlis will use its supervisory tools and diligently follow up [on the implementation of] this law,” said the lawmaker, who is also on the Majlis Presiding Board.

The Economic Reform Plan, encompassing targeting the goods subsidies, is probably one of the most important undertakings in Iran’s recent economic history.

The controversial plan, scheduled to be implemented in September is expected to phase out up to USD 20 billion in state subsidies for staples such as food and fuel.