The Research Center of Iran Chamber of Commerce has warned that proposed budget policies risk intensifying pressure on small and medium-sized enterprises (SMEs), arguing that fiscal and tax measures are misaligned with the realities facing businesses.
In a report released on Tuesday, the center said SMEs are grappling with falling demand, rising costs and heightened economic uncertainty, while recent fiscal policies appear to assume “firms still have the capacity to absorb additional burdens”. It said this mismatch has become one of the sector’s main challenges.
According to the report, the draft budget for the coming year, in its current form, would act as a source of added strain rather than support amid stagflation. The package of policies would hit SMEs simultaneously through currency shocks, heavier tax pressures and higher energy prices, it said.
SMEs are described in the report as the backbone of production, employment and social stability in Iran, accounting for a large share of jobs. Continuing the current approach could accelerate systemic bankruptcies among smaller firms and deepen the employment crisis, the center warned.
Beyond weakening businesses, the report said the trend would lead to lower output and job losses, costs not immediately reflected in the budget but likely to emerge in coming years as broader social expenses.