Tehran Guilds Chief Warns 2026 Budget and Tax Hikes

TEHRAN (Iran News) In an interview with ILNA, Hamidreza Rastegar said the draft budget, which outlines the government’s revenues and expenditures, plays a decisive role in policymaking and executive decisions, particularly for guilds, businesses and economic enterprises.

Rastegar identified taxation as the most serious concern in the proposed budget, stressing that any increase in business taxes aimed at boosting government revenue must reflect economic realities such as production levels and employment conditions.

“Taxes can rise only when incomes and business revenues increase,” he said. “In Iran, incomes have not grown; inflation has.”

He explained that inflation-driven price increases have not translated into real income gains for producers, distributors or business owners, leaving no genuine basis for imposing higher taxes.

Rastegar criticized what he described as the government’s revenue-centered approach to budgeting, questioning how businesses are expected to absorb additional tax burdens amid worsening economic conditions.

“Business owners and the public are facing some of the toughest economic circumstances,” he said. “With inflation and rising living costs, people are already under pressure. Businesses are part of society and cannot be separated from it.”

He urged parliament to take these conditions into account when reviewing and approving the budget bill.

Comparing Iran’s policies with those of other countries, Rastegar noted that many governments reduce taxes during economic downturns or when higher taxes threaten employment.

“This principle has not been adequately considered in this year’s budget,” he said.

Rastegar warned that regardless of whether tax increases target producers or businesses, the final cost will be borne by consumers.

“If the government truly prioritizes the public, raising taxes is not the right approach,” he said. “In every case, the burden will eventually fall on the people.”

He argued that the only sustainable solution lies in reducing government expenditures and streamlining the public sector.

“The cost of running the government is very high,” he said. “This must be reformed.”

Highlighting that most economic enterprises in Iran are small and medium-sized businesses, Rastegar warned that policies leading to business closures would have serious social consequences.

“If businesses shut down, many people will lose their jobs, creating another major challenge for society,” he said, calling for stronger government support for businesses instead of higher taxes.