Tax evasion undermining economic equality

Financial Tribune – Visible inequality in income distribution aside, Iran’s economy is saddled with an unfair tax system that has made the realization of economic justice more elusive than ever.

Due to varieties of tax breaks and holidays, the country has been named “the taxpayer’s paradise,” albeit, for the affluent and their lawyers well-versed in ins and outs of the dysfunctional tax system.

The situation for weaker groups, like fixed-wage earners, is naturally tougher. They must pay their taxes before even seeing the color of their paychecks!

In a rare acknowledgment in October by head of the Iranian National Tax Administration, Omid Ali Parsa, 40% of the economy does not pay tax. In the same vein, Eliyas Hazrati, head of the Majlis Economic Commission, said earlier that 85% of Iran’s tax revenues “come from barely 3% of taxpayers”.