MP: Majlis not to vote for 10% VAT increase

A view of Iran’s Majlis

Tehran, Dec 13, IRNA – Mahmoud Shokri, a member of the Economic Commission of Majlis said that in the course of examining the next year budget bill the parliament will not vote for the 10% increase in value added tax.
  Speaking to IRNA, Shokri said the Majlis will definitely resist against the proposal for 10% rise in VAT, adding that MPs believe they should not cause increase in inflation and price of commodities in the household basket.

However, Shokri who is a representative for Talesh in the Majlis said it seems the Majlis is determined to reduce the figure to 8 and ultimately to 9 percent.

He said that parliamentarians believed that the VAT rate should be maintained at the 8% considered in the law for the Fifth Development Plan and from that figure one percent be allocated to the health sector and the remaining seven percent to other sectors.

As for the tax stipulated in the next year budget bill he said the figure presented by the government is not a source of concern as the tax capacity in the country is above 1000 thousand billion rials which in the case of proper implementation of tax law and just collection of taxes will go up based on the law and without increasing it.

As for tax exemption of certain organizations he said those organizations are also subject to taxation and value added and if they enjoy tax exemption this is a privilege granted them by the legislation.

He denied that these organizations were not subject to paying taxes, saying they were administered by their own revenues.

Referring to tax evasion, the MP noted that the extent of tax evasion is very high and even the 620 thousand billion rial tax forecast in the current year budget is faced with 3 percent plunge.



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