Expansion of Tax Scope for Citizens; From Real Estate and Vehicle Transactions to Gold and Cryptocurrency

Members of the Islamic Consultative Assembly approved an increase in private taxes for Iranian citizens in the form of taxes on 'buying and selling real estate and vehicles to gold and cryptocurrency.' According to the House of the Nation news agency affiliated with the Assembly, representatives of the Islamic Consultative Assembly agreed in today's open session on Tuesday, May 11, to amend Article 12 of the 'Tax on Speculation and Gambling' bill so that all non-commercial individuals 'transferring assets' or 'assigning rights' in all regions of the country, including free trade-industrial zones and special economic zones, will be subject to 'capital gains tax.' According to this resolution, properties of various uses and rights of transfer, various personal license plate vehicles, types of gold, silver, platinum, and jewelry, various currencies, and types of cryptocurrencies will be subject to this tax. The approval of the general principles of this bill on June 5, 2021, sparked a wave of protests among social media users who believed that the Islamic Republic government intends to collect a significant portion of the value of private transactions from individuals in the form of taxes on 'transferring assets' or 'assigning rights.' Recently, alongside the re-examination of this bill in the second round of the Economic Commission of the Islamic Consultative Assembly, a coordinated and supportive wave from users known as 'value-oriented' and 'revolutionary' has emerged to facilitate and expedite its approval. However, some other users, in response to this wave, wrote to the supporting users: 'If you hope that increasing the tax on property transfers will harm those who have entered this market for speculation, you are seriously mistaken; this will only lead to an increase in property prices.' In recent years, especially in recent months, prices in some markets such as housing, gold, vehicles, currency, and coins have seen a significant surge, leading to serious economic crises. These are the same markets that are now widely included in the scope of 'tax on speculation and gambling.' In recent years, alongside high inflation in consumer goods, a sharp increase in rent, and a decrease in the national currency's value, some citizens have turned to purchasing investment items such as currency, coins, cryptocurrencies, or vehicles to prevent a severe reduction in their limited assets. A user at the beginning of the approval of the general principles of this bill tweeted: 'I remembered the cartoon of Robin Hood and the last coin of the poor boy that the sheriff cunningly stole from him.' This bill, after passing through the Islamic Consultative Assembly, requires the approval of the Guardian Council to officially become law. Repetitive version of 'command economy'; prohibition of coin transactions without registration in the system. Uncertainty of essential goods in customs; possibility of shortages in the market. A member of the Assembly: Tax exemptions for merchants to encourage them towards 'the system and revolution' are being reviewed.