94 Billion Tomans Paid from 4,500 Billion Tomans Tax on Luxury Residential Owners

According to the Iranian National Tax Administration, 135,509 luxury residential units and villas are subject to a tax amounting to 4,463 billion tomans, of which only 94 billion tomans has been collected. The threshold for luxury housing tax for the year 1403, as per the budget law, is set at 35 billion tomans, and all residential units and villas valued over this amount must pay tax on the excess. The non-payment of taxes by luxury homeowners occurs amidst reports indicating that tax evasion by the affluent has become commonplace, with the Tax Administration reporting a 15% increase in government revenues from income and salary taxes, a 36.5% increase from goods and services, and a 28.5% decrease from wealth taxes in Spring 1403. The government's performance shows that in recent years, due to a decrease in foreign revenues, it has focused on tax collection to cover part of its ongoing expenses. In this context, the head of the National Tax Administration stated on October 2 of this year that there was a 49% increase in the agency's revenues in the first half of this year compared to the same period last year, totaling 511,389 billion tomans, which is about 167 billion tomans more than the previous year. The Mehr News Agency also reported in May of this year that government tax revenues have increased from 109 billion tomans in 1397 to about 806 billion tomans, indicating a 740% increase over six years. While tax revenues have increased, many experts believe that the government does not provide services commensurate with the amount of taxes collected, and there is a lack of transparency regarding how tax revenues are spent. A significant portion of the economy, estimated by experts to be over 50% of Iran's total economy, is under the control of Ali Khamenei, the Supreme Leader, and is exempt from taxes.