A Trade Official: Inflationary Recession in Iran Has Led to the Closure of Laptop Stores

The head of the Computer Technologists Union in Iran states that the inflationary recession in the country has caused the "closure of laptop and related equipment stores" and has led to the "retreat of investors" active in this sector. According to ILNA news agency, Mohammad Reza Faraji-Tehrani said that one of the main reasons for the closure of technology units is that 90% of the items in this sector are imported, and even if some items are produced domestically, their raw materials are imported and assembled in Iran. He noted that restrictions on the import of IT goods and their raw materials have caused a market recession. Faraji-Tehrani emphasized that parent companies do not sell goods directly to Iranian traders, forcing traders to resort to "circumventing sanctions," which is costly for them. This trade official stated that "importing these goods through smugglers" is "cheaper for shop owners, resulting in smugglers having a stronger presence in the market." Many experts say that the inflationary recession, sanctions, and smuggling are the result of the continuation of incorrect policies in foreign and economic affairs that have persisted in various governments of the Islamic Republic over the past four decades. After Ebrahim Raisi submitted the 2024 budget to the Islamic Consultative Assembly on December 5, experts referred to the published text, stating 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. According to the provisions of the 2024 budget bill, the government has increased the tax rate by nearly 50% in this bill 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, which amounts to 12 million tomans annually. The response of the Planning and Budget Organization to the "Research Center of the Parliament" indicated a 13.5% increase in inflation with the increase in the exchange rate of basic goods. The generalities of the 2024 budget were rejected in Parliament, and the proposal to set the dollar at 35,000 tomans for the 2024 budget has been criticized by Ahmad Alavi, stating it would exacerbate inflation and economic recession. The 50% increase in taxes has been cited by experts as a cause for the expansion of poverty.