Closure of Gold Shops in Tehran and Zanjan in Protest Against 9% Value Added Tax

In conjunction with the closure of several gold shops in Tehran and Zanjan due to protests against the 9% value-added tax on gold, the head of the Union of Gold Producers and Exporters announced correspondence with the presidency and parliament to reduce this tax to 3%. On Thursday, December 4, ISNA reported the closure of gold shops in Tehran's passages, Noor, and the Zanjan market due to protests against the 'high value-added tax.' According to this report, the Tehran Goldsmiths' Union did not deny this issue, and Mohammad Safaei, the head of the Zanjan Gold and Jewelry Union, also confirmed the closure of gold shops in this province in protest against the 'high value-added tax.' Mr. Safaei stated that following the issuance of about seven or eight value-added tax notices related to the years 2012 and 2013 'amounting to 200 and 300 million' tomans in the past two days, the gold shops in Zanjan closed their stores in protest. He mentioned that with the follow-ups from the Political Security Deputy of the Governorate and the Director General of Finance of the province, it has been decided that these shops will resume operations. The head of the Zanjan Gold and Jewelry Union emphasized that the current 9% value-added tax is 'not payable.' The value-added tax law has been in effect in Iran since 2008 for certain professions and faced resistance from goldsmiths, including in Isfahan and Tehran. In recent years, goldsmiths in various cities of Iran have repeatedly closed their shops in protest against the value-added tax. During this time, the government has repeatedly attempted to collect the value-added tax on gold through warnings to goldsmiths. Meanwhile, Mohammad Vali, the head of the Union of Gold Producers and Exporters, announced correspondence with the presidency and parliament to reduce the value-added tax on gold by six percent. According to Mr. Vali, explanations have been provided to both institutions, and it is expected that opinions from both sides will be announced soon in meetings. He stated that given the negotiations held, there is a possibility of a six percent reduction in the value-added tax on gold. Protests against the value-added tax law in recent years have also led to strikes by other market professions, including iron merchants and fabric sellers. In this context, there has been criticism from parliament members regarding the security response to merchants' protests, the continuation of iron merchants' strikes in Tehran, and criticism from the Friday prayer leader of Isfahan regarding the goldsmiths' strike in this city. A strike involving 5,500 stone-cutting units in Iran has also occurred in protest against the value-added tax.