The Iranian National Tax Administration’s earnings grew by 60% in the three quarters of the current fiscal year (March 21-Dec. 21) compared to the corresponding period of last fiscal year, says the deputy head of INTA.
Noting that the tax income was above the budgetary target for the period, Mohammad Masihi added, “We expect the figure to reach 2,700 trillion rials [$9.09 billion] by the [fiscal] yearend [March 20, 2022] as per [the fiscal 2021-22] budget,” he was quoted as saying by Fars News Agency.
A total of 1,925 trillion rials ($6.48 billion) in tax were collected in the last fiscal year (ended March 20, 2021), indicating a 37% increase compared with the year before.
According to Masihi, the government earned 107% of the estimated budgetary income from taxation in the last fiscal year.
The government’s tax revenues consist of its returns from “direct taxation” and “tax on goods and services”. Direct taxes include three groups of “tax on legal entities”, “income tax” and “wealth tax”.
Direct tax earnings stood at 1,190 trillion rials ($4 billion) in the year ending March 20, to account for 136% of the projected income in the budget law and 46% more than the direct tax revenues of the preceding year (March 2019-20).
“Tax on goods and services generated 735 trillion rials [$2.47 billion] for the government, accounting for 80% of the expected budgetary figure and 23% more than the corresponding revenues in the previous fiscal year,” he was quoted as saying by Fars News Agency.
Referring to the sub-sections of direct tax revenues, the official said, taxation of legal entities generated 560 trillion rials ($1.89 billion) during the period, indicating a 27% growth year-on-year.
A total of 395 trillion rials ($1.33 billion) in income tax were collected as well, registering a 36% year-on-year rise.
Last fiscal year’s wealth tax income stood at 232 trillion rials ($781.14 million), showing a 178% increase compared with the year before.
The official blamed the coronavirus pandemic and decline in transportation and fuel consumption for a 14% decrease in petroleum products’ tax revenues and said INTA collected 60 trillion rials ($202.02 million) from taxation of petroleum products last year.
The government is looking to substantially increase its earnings from taxation in the upcoming fiscal year (to start March 21).
It expects to earn 5,270 trillion rials ($17.74 billion) in tax revenues in the next fiscal year (March 2022-23) — 95% more than in the current year. The target is part of the budget bill President Ebrahim Raisi submitted to parliament on Dec. 12.
For the first time, the budget counts on taxing all owners of cars valued at over 10 billion rials ($33,670) and owners of homes valued at over 100 billion rials ($336,700).
Notably, taxation of economic enterprises declined significantly in the fiscal 2020-21 due to the imposition of Covid-19 restrictions and repeated shutdowns.