50% Increase in Taxes; Experts Say It Will Worsen Poverty

After Ebrahim Raisi presented the 2024 budget to the Islamic Consultative Assembly on December 5, experts referred to the published text and stated that this budget, particularly the 50% increase in taxes, will make the living conditions of the people more difficult and expand the scope of poverty in Iran. Vahid Shaghaghi, an economic expert, criticized the proposed budget of the thirteenth government, stating, "You cannot collect high taxes from a poor society." He added, "Increasing taxes means reducing people's purchasing power, which will lead to exacerbated poverty and inequality in society." Majid Salimi Boroujeni, an economic analyst, also mentioned that "the increase in taxes in the 2024 budget bill will put significant pressure on the weaker segments of society. This tax increase could lead to a decrease in work and production motivation and ultimately result in economic recession." Ahmad Alavi, an economics professor, emphasized in an interview with Voice of America on December 6, "In progressive countries, those with substantial incomes are taxed and help the more vulnerable individuals, but in Iran's rent-seeking economy, only workers are taxed, while government institutions, especially those under the supervision of the Supreme Leader and with the highest incomes, are exempt from any oversight and tax payments." According to the provisions of the 2024 budget bill, the government has increased the tax rate by nearly 50% in an effort to reduce dependence on oil revenues. This tax increase primarily targets the weaker segments of society, including wage earners, workers, and producers. According to the 2024 budget bill, the tax exemption ceiling for wage earners has been reduced from 18 million tomans to 12 million tomans. Based on calculations, an individual earning 20 million tomans must pay 1 million tomans in taxes monthly, amounting to 12 million tomans annually. Ahmad Alavi: In Iran's rent-seeking economy, only workers are taxed, not government institutions. Part of the program on the last page | The reason for not taxing 493,000 empty luxury homes. The 2024 budget has reached the parliament; the autumn of livelihood, the spring of military. Very difficult conditions in the coming year; workers' wages will increase by 30%, which is still lower than the inflation rate. The head of the Social Workers Association: petty thefts have increased to secure a livelihood. The government has retreated from the tax floor for workers and employees; wages up to 12 million tomans are exempt from tax payments.