29 Mar 2024
Saturday 16 December 2017 - 12:01
Story Code : 286717

Iran moves to tax its frequent travelers

Al Monitor | : A threefold increase in the departure tax proposed by the government has prompted outrage among many Iranians. The proposed hike is part of the administrations new budget plan for the upcoming fiscal year, starting March 21, 2018. President Hassan Rouhanisubmitted the draft budgetto parliament Dec.10, but the controversy surrounding the document may prevent its approval.


The proposal of a new government budget in Iran has always been accompanied by a great deal of debate. However, the latest draft seems to be drawing more criticismthan before, particularly in the parts thatinvolve departure taxes.

But what are departure taxes and how did they come to be?Irans parliamentapproved this tax in 1985, given the countrys unique situation at the time, namely the Iran-Iraq War and the shortage ofgovernment funds. According to the measure, any person who wished to travel abroad via airwas required to pay a feeof 50,000rials ($1.40) to the treasury. Over time, this law became permanent and the fee steadily increased.Thecurrent feeis 750,000rials ($21), butunder the new budget plan submitted by Rouhani,this figure would increase to2.2 million rials ($61.80) for one'sfirst tripabroad. Thefee would riseto3.3 million rials ($92.70) for the second trip and then to 4.4 millionrials($123.60)for all other trips over a 12-month period.

Asocial media frenzyensued after news of the proposed feehikebroke, prompting government officials to respond to the situation. The fact that there are twice as many [Iranian] tourists who exit the country as [foreign] ones who enter is not a good thing," saidAli Asghar Mounesan, the head of Irans Cultural Heritage, Handicraftsand Tourism Organization, onDec.10. "Previously, some 100,000 rials ($2.80) of each departure tax would go to the Iranian Cultural Heritage Center. With the increase, 400,000 rials ($11.24) [of each departure tax] will be allocated to this organization.

 

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