Thursday, March 21, 2019  
Iran budget dependency on oil revenues to decrease next year

Wednesday, Feb 28, 2018

The Minister of Economic Affairs and Finance of Iran said the country’s budget dependency on oil revenues dropped from 46 at the end of 1391 (March 2012-13) to 34 at the end of 1395 (March 2016-17) due to the increased tax revenues.

(SHADA: TEHRAN) -- Considering the increase in tax revenues this year, the share of oil revenues in the budget will be lower than this figure by the end of the year, Massoud Karbasian added.

As to the tax-to-credit costs ratio in the country, the Minister of Economy said that the ratio increased from 44% at the end of 1391 to 49% at the end of 1395, adding: The growth is good but not desirable because this figure is 20% in developing countries.

He further stated that the tax-to-GDP ratio was 5.4 percent at the end of 1391, reaching 8 percent at the end of 1395.

According to the Minister, the most important achievements of the tax system in recent years are the completion of the taxpayer's database, the increase of tax incentives for the production and export sector, the application of zero tax rates for the clarification of taxes and tax-exempt activities, and strengthening the enforcement of tax laws.

Karbasian pointed to four strategic priorities of the Ministry of Economy in the field of tax system and said: The priorities are the reform of tax laws and regulations, the implementation of the mechanized sales fund, the reformation and completion of the value added tax system, and the full implementation of the comprehensive tax plan.

Sustained financing of annual budgets, equity in distribution and allocation of credits, investment activities, and reduction of reliance on oil revenues are among the government's priorities in providing the comprehensive tax plan, he continued.


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