The mullahs’ illegitimate regime, now in its forty-fifth year of oppressive and corrupt governance, extends its reach into every facet of Iranian life. Consequently, every act of defiance against this despotic rule is seen as an act of opposition by the Iranian people and one such battleground is tax evasion.
According to a report by the Research Center of the Iranian Parliament, “in the budget bill for the Iranian calendar year 1403 (March 2024 to March 2025), tax revenues (excluding customs duties) amount to 1,122 trillion tomans, which represents a 49.8 percent growth compared to the previous year’s budget law. The major share of tax revenues is allocated to value-added tax (42 percent of total tax revenues) and corporate income tax (40 percent of total tax revenues).”
As per the latest market rates, the exchange rate stands at roughly 55,500 Iranian tomans for one US dollar.
The state-run website Iran Jib wrote on December 26, 2023, “According to experts, the government is trying to compensate for the shortfall in oil sales by drastically, suddenly, and illogically increasing tax revenues. However, given the country’s economic situation, these tax increases will further deepen the economic recession.”
The source added, “Statistics also indicate that tax revenue increased by 55 percent in the year 1401 compared to the previous year, and it is expected to increase by about 50 percent compared to the previous year in the next budget. On the other hand, taxes constitute a significant portion of budgetary resources, and according to official statistics presented in the first 7 months of the current year, 94 percent of the tax revenue has been realized.”
#Iran’s State Media Have Been Warning against Excessive Taxationhttps://t.co/R4aECAEvFs
— NCRI-FAC (@iran_policy) October 17, 2023
In July 2023, Hashemollah Falahatpisheh, a former of the regime’s parliament, lashed out against the Raisi administration, tweeting, “This government and parliament have imposed more than 20 new taxes and expenses on people’s lives. Property tax, rent, car tax, card readers, bills, money transfers, increased fees, and various government service charges, and of course, censorship circumvention.”
However, Iranians strive in every way possible to refrain from paying taxes to a government whose entire authorities are corrupt to the core. Therefore, tax evasion has become a form of resistance against the state in Iran and many people find ways to conduct their essential purchases while circumventing tax audits.
According to the state-run newspaper Arman, one method individuals and business owners employ to circumvent the tax system involves conducting card-to-card transactions rather than using ATMs.
Nevertheless, the regime intensifies its surveillance of individuals’ bank accounts, aiming to tighten its grip on the populace. Through this method, they pursue tax collection and impose penalties on shop owners.
The state-run Bahar News wrote on January 31, “The Tax Affairs Organization recently declared, in response to certain traders’ requests for card-to-card transactions from clients, that by laws and regulations, all deposits made to commercial bank accounts through various channels including electronic payment gateways, card readers, card-to-card, Satna, Paya, etc., are considered in tax calculations.”
Watch and judge how the clerical regime is spending #Iran's oil and tax revenues pic.twitter.com/6ejsMtpgPm
— NCRI-FAC (@iran_policy) August 18, 2023
On the contrary, numerous individuals and traders opt for cash transactions to reduce tax authorities’ intervention in their finances and dealings. This method poses a challenge for governments to regulate. Consequently, state agents endeavor to limit the circulation of cash among the public, encouraging the use of cards and card readers instead.
Many banks, for diverse reasons, refrain from offering customers substantial amounts of cash and instead direct them to ATMs. However, people often encounter either empty ATMs or withdrawal limits insufficient to meet their needs due to stringent payment ceilings. Since 2008, the maximum withdrawal limit from ATMs has been 200,000 tomans (approximately $3.6).
Thus, the ongoing battle and tax evasion tactics employed by the populace and traders against the corrupt and predatory clerical dictatorship persist in the minutiae of daily life, utilizing various innovative methods.
