The head of the stone cutting units union in Tehran province announced on Wednesday, August 14, that five thousand five hundred out of six thousand stone cutting units in Iran have 'shut down' their operations in protest against the value-added tax. According to Tasnim News Agency, Mohammad Hajarzadeh stated that the owners of stone cutting units in Isfahan and Tehran provinces have closed their units since July 21 and 23. He also reported that stone cutting units in Lorestan stopped working last week, and those in Qom also ceased operations on Wednesday. According to Hajarzadeh, last year in a meeting between representatives of the stone cutting units and the Minister of Economy and the head of the Tax Affairs Organization, it was 'agreed' that these units would pay 10% more income tax instead of the value-added tax, but the Tax Affairs Organization 'does not accept this memorandum.' The report mentions that on June 14, a meeting was held in the office of Ali Larijani, the Speaker of the Iranian Parliament, with the presence of Ali Asgari, the head of the Tax Affairs Organization, where Asgari emphasized that 'the Minister of Economy's promise to him is irrelevant' and that the stone cutting units must pay their value-added tax. According to Hajarzadeh, after these statements from the head of the Tax Affairs Organization and his 'inappropriate behavior' and 'insult' towards the representatives of the stone cutting units, the owners decided to shut down their operations. He did not elaborate on the details of what he referred to as the 'inappropriate behavior' and 'insult' of the head of the Tax Affairs Organization. The value-added tax law has been in effect in Iran since 2008 for certain professions and faced resistance and strikes from jewelers, including in Isfahan and Tehran at that time. According to the Tax Affairs Organization, this law became mandatory for 12 other professional groups from October 2009. However, the government has still not been able to compel these professions to pay this tax, and protests against this law in recent years have led to strikes by other professions, including iron and fabric sellers.
Strike of 5,500 Stone Cutting Units in Iran in Protest Against Value Added Tax
5,500 stone cutting units in Iran have gone on strike to protest the enforcement of a value-added tax, which they believe contradicts a prior agreement with the government. The strike reflects ongoing tensions between business owners and tax authorities, highlighting the challenges the Iranian government faces in tax collection. This situation is significant as it may indicate broader discontent within the Iranian economy.
👥 Key Players
📰 What Happened
Over 5,500 stone cutting units in Iran have gone on strike in protest against the enforcement of a value-added tax, claiming it contradicts a prior agreement with the government. The strike highlights ongoing tensions between business owners and tax authorities.
- The strike began on July 21 and 23, 2023, and has involved multiple provinces including Tehran and Isfahan.
- The value-added tax law has faced resistance since its implementation in 2008, leading to previous strikes by various professions.
💡 Why It Matters
📚 Background
The value-added tax has been a contentious issue in Iran since its introduction, with various sectors protesting its enforcement. This ongoing conflict illustrates the difficulties the Iranian government faces in implementing tax reforms.
🏷️ Entities Mentioned
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