{"id":314109,"date":"2023-12-08T14:40:32","date_gmt":"2023-12-08T13:40:32","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=314109"},"modified":"2023-12-08T14:40:32","modified_gmt":"2023-12-08T13:40:32","slug":"irans-draft-budget-for-next-year-signals-increased-pressure-on-the-population","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/irans-draft-budget-for-next-year-signals-increased-pressure-on-the-population\/","title":{"rendered":"Iran’s Draft Budget for Next Year Signals Increased Pressure on the Population"},"content":{"rendered":"

\"iran<\/p>\n

Iran’s regime has released the draft budget<\/a> for the fiscal year 1403 (March 2024- March 2025), marking an 18.2% increase in the general government budget, managing the country’s affairs with a total of 2,642 billion tomans.<\/p>\n

The primary sources of this budget include taxes, oil sales, government property sales, bond sales, and company divestments. Notably, the most significant income source is from taxes. For the upcoming year, the regime anticipates a tax revenue of 1,122 billion tomans, indicating a 50% increase compared to the current year’s 749 billion tomans.<\/p>\n

The regime aims to offset this substantial tax increase by levying it on ordinary citizens. According to regime financial institutions, over 95% of the tax revenue, totaling more than 711 billion tomans has been collected from the start of the current year.<\/p>\n

While the tax revenue for the current year has seen a 65% increase from 454 billion tomans to 749 billion tomans from last year, this additional burden on the people, especially in the production sector, has coincided with economic recession and inflation. Governments typically reduce taxes during financial downturns, but Iran’s regime is doing the opposite, increasing taxes by 50%<\/a>.<\/p>\n

In contrast, despite an official inflation rate hovering around 50%, Ebrahim Raisi’s government plans to raise the minimum wage only by 18 to 20%. This widening gap between wages and household expenses will further reduce people’s purchasing power.<\/p>\n

Considering the minimum wage is approximately 10 million tomans, the regime intends to tax people with incomes exceeding 10 million tomans. With the poverty line around 30 million tomans, this move aims to officially impoverish the majority of Iran’s society further, ensuring the regime has the necessary resources for its projects and ambitions.<\/p>\n

Given the regime’s official statistics indicating a persistent 40-50% inflation rate<\/a>, which is likely higher in reality, taxes effectively act as a form of inflation tax. This reality is evident in examples such as the exorbitant prices of cars in Iran compared to other countries.<\/p>\n

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Watch and judge how #EbrahimRaisi<\/a> wants to compensate for the #Iranian<\/a> regime's budget deficit pic.twitter.com\/smAnIYCTnE<\/a><\/p>\n

— NCRI-FAC (@iran_policy) March 2, 2023<\/a><\/p><\/blockquote>\n