The Iranian National Tax Administration earned 4,700 trillion rials (over $9 billion) in tax income during the last fiscal year that ended on March 20, 2023, according to the head of INTA’s Planning and Statistics Group.
“The earnings account for 103% of the figure projected in the budget and mark an increase of 54% compared to the preceding year,” Mojtaba Amiri was also quoted as saying by IRNA.
“From the total income, more than 2,930 trillion rials pertain to direct taxes, which account for 70% of the figure estimated in the annual budget and register a 36% rise compared to the year before,” he added.
The three sub-categories of direct taxes, namely tax on legal entities, income tax and capital tax stood at 1,890 trillion rials, 849 trillion rials, and 190 trillion rials respectively.
“A total of 1,760 trillion rials [from the total income] pertain to tax on goods and services, accounting for 84% of the budget and registering a 51% rise compared to the year before,” he said, concluding his remarks by saying around 1,100 trillion rials were paid to municipalities and rural governorates last year, registering a 170% rise compared to the year before.
Davoud Manzour, the former head of INTA, recently said the identification of new taxpayers and prevention of tax evasion make up 60% of the rise in the government’s tax income.
On the remaining 40%, he said part of the increase (in tax income) comes with rising commodity prices, as value added tax is an important form of taxation and the 9% VAT evidently increases in volume in line with rising prices.
Manzour noted that INTA’s estimates show about 350,000 companies and three million individuals failed to submit their tax declarations last year.
Stressing that the government pursues a policy of trusting taxpayers’ declarations, he added that only 5-10% of all declarations will be reviewed by the tax agency.