Reforming taxation system;
Tens of experts gathered in Tehran to shed light on Iran’s taxation system reform plan; another phase in Iran’s economic reform plan already under way in the country. The plan is seen as much important as launching the subsidy targeted plan.
Addressing the conference President Ahmadienajd, whose government has carried out the plans of gasoline rationing and subsidy reform said:
Basic reforms have always been accompanied by foreign and domestic pressures. The revenue earned from tax evasion is tantamount to a lethal poison which breaks down the foundations of family and society.
The taxation system has been the focal point of attention since the victory of Iran’s Islamic Revolution in 1979, but as yet, an efficient taxation system has not been enforced in the country. This has deprived Iran of a healthy and efficient taxation system, and also worsened the imbalance in the distribution of incomes in the society.
The taxation system in Iran is an indirect system and for the same reason it is not transparent enough. The only case where the law stresses on collection of direct tax is the tax on employees’ salaries and workers’ wages.
This number stands below 14% and around 20%-30% in developed and developing countries respectively.
Iran officially launched its subsidy reform plan last December aimed at overhauling the country’s economy by shelving energy and food subsidies. Banking, currency, taxation, customs, construction, employment, the development of nationwide distribution of goods and services, social justice and productivity are a series of measures included in the plan. According to the officials the next phase of the plan which focuses on putting value on Iran’s national currency will be carried out in the near future.