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Sanctions-Hit Tehran Taking Record Tax Receipts – More Than Oil Revenue

21st Century Wire says…

Tyrants hate competition. This is the real reason why Saudi Arabia and its political prostitutes in Washington DC have been freaking out lately.

With stability comes economic power. Most certainly, Iran will make a massive impact on the region’s economy and trade…

RT.com

This year Iran’s government has collected more revenue from taxes than from oil revenues, something that hasn’t happened in half a century, a senior official in the National Iranian oil company (NIOC) said.

“For the first time in 50 years, the government’s share of the oil revenue is less than what it is earning from tax, including VAT,” Ali Kardor, NIOC deputy managing director, told British newspaper The Guardian the sidelines of the Europe-Iran forum in Geneva. “Only around 10 percent of Iran’s GDP is currently dependent on oil.”

Preview Iranian oil revenue was hit by a combination of plummeting crude price and years of sanctions imposed on its oil sector by Washington and its foreign allies, primarily the European Union.

At the same time taxation has been a week spot in Iranian governance for years, with widespread tax evasion and exempts for certain entities.

Tehran launched taxation reform in the early 1990s, although a genuine effort didn’t come before Mohammad Khatami’s presidency of 1997-2005, Hossein Rasam, director of Rastah Idealogistics, told the newspaper. Under President Mahmoud Ahmadinejad, Iran first introduced VAT.

“Bearing fruit just now, Iran is pursuing tax collection more seriously and putting itself in order to rely more on taxation,” he said, adding that in recent years Tehran had rectified several major tax loopholes.

Rasam said it was not clear whether Tehran would be able to maintain the drive after international sanctions are lifted from the Iranian oil sector and if the oil price rebounds. Iran and six leading world powers brokered a deal in June under which Iran would roll down its controversial nuclear program in exchange for sanctions relief.

Iranian President Hassan Rouhani expects that the UN will verify Tehran’s compliance and open the way for Iran’s return to global oil markets in January. Kardor said that in November NIOC would offer contracts worth more than $100 million for foreign investors interested in exploring 45 potential fields in Iran.

“We currently produce 3 million barrels of oil a day, of which 1.3 million are exported but we expect that to increase to 2.3 million in May or June next year,” he said…

Read Full Article at RT.com


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