The Minister of Labor, Welfare, and Social Security of Ebrahim Raisi's government announced that the electronic coupon system will be implemented starting next week. He emphasized that in the pilot scheme, beneficiaries of subsidies preferred cash over coupons. Solat Mortazavi stated that in the first step, the subsidy for the coupon will increase by 20%, and those eligible for the subsidy can use up to 70% of their subsidy to purchase goods and qualify for an increase in their subsidy. According to the report, the electronic coupon was supposed to enter the economic cycle last year after the removal of the 42,000 Toman currency, with the government claiming that this tool would provide supportive subsidies in the form of goods to the people. However, this has not been operationalized even after a year. In this context, the advisor to the Speaker of Parliament responded yesterday to the government's spokesperson's claim regarding the non-implementation of economic laws approved by Parliament in a tweet, stating: 'The problem is not the non-implementation of the law, but the illegal removal of the preferential currency.' Mohammad Saeed Ahadian, in his tweet, indirectly addressed Ali Bahadori Jahromi, stressing: 'I wish Mr. Bahadori had read the text of the law before criticizing the non-implementation of the law. The law did not state that the coupon must be implemented, but only emphasized that the preferential currency should not be removed before implementing the coupon.' The removal of the 42,000 Toman currency at the beginning of the year 1401 (2022) caused the prices of many goods, including essential items, to rise. Ebrahim Raisi had announced at that time that the government would provide supportive subsidies to compensate for the price increases. The government's efforts last year had no impact on halting the rising prices. The official return of coupons to Iran's economy, which the Minister of Labor, Welfare, and Social Security promised to implement next week, is the latest action by the Islamic Republic's government to control prices and meet the basic needs of a large segment of Iranian society, which according to official statistics, is increasingly falling below the poverty line.
Return of Coupons to Iran's Economy Starting Next Week
Iran's Minister of Labor announced the implementation of an electronic coupon system starting next week, increasing subsidies by 20%. This move comes after the removal of a preferential currency led to rising prices and aims to address the growing poverty in the country. The government's previous efforts to control inflation have been ineffective.
👥 Key Players
📰 What Happened
Iran's government announced the return of an electronic coupon system to provide subsidies to citizens, increasing the subsidy amount by 20%. This decision follows previous economic challenges that led to rising prices and poverty levels.
- The electronic coupon system was initially planned for implementation last year but was delayed.
- The removal of the 42,000 Toman currency earlier this year contributed to increased prices for essential goods.
💡 Why It Matters
📚 Background
Iran has faced significant economic challenges, including high inflation and poverty rates, exacerbated by sanctions and poor economic management. The government has struggled to implement effective economic reforms.
🏷️ Entities Mentioned
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