“Our tourism industry has had special conditions in the past year, and the food and hotel industries have also experienced severe damage due to the outbreak of the coronavirus, so they have been among the sectors exempted from tax payment,” Dejpasand said.

Pointing to the goals for the current year’s tax revenues and the impact that these exemptions could have on the realization of these goals, the official said: “Gradually, by planning and completing smart tax projects, it is possible to achieve these goals.”

Since the outbreak of the coronavirus pandemic in Iran, the government has been implementing several programs for supporting the sectors affected by the pandemic.

One of the major points of focus in government programs has been considering tax exemption and tax relief programs for supporting certain industries that endured the most damage from the situation.

The taken measures, however, have not been enough so that back in May 2020, members of the industry committee of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA), in a meeting, criticized the inefficiency of the government’s support packages against the impacts of the coronavirus outbreak.

The committee members criticized the performance of the Central Bank of Iran (CBI), Iranian National Tax Admission Organization and Social Security Organization in dealing with the problems of the industry sector, especially during the pandemic recession, and called for the strict implementation of the resolutions of the National Coronavirus Combat and Prevention Headquarters.

In April 2020, ICCIMA Head Gholam-Hossein Shafeie had written a letter to President Hasan Rouhani, suggesting ways for supporting domestic production against the economic impacts of the coronavirus pandemic.

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Dejpasand noted that tax revenues accounted for 84 percent of the total funding made in various sectors in the previous year, ILNA reported.

According to the official, over 100 trillion rials (about $2.38 billion) of deferred taxes were also collected in the previous Iranian calendar year.

He further noted that some 2.08 quadrillion rials (over $49.5 billion) worth of various bonds were also issued last year, the revenues of which were used to offset the year’s budget deficit.

According to the head of Iran’s National Tax Administration (INTA) Omid-Ali Parsa, Iran’s tax revenue increased 31 percent in the Iranian calendar year 1398 (ended on March 19, 2020).

Putting the country’s tax income at 1.43 quadrillion rials (about $34.04 billion) in the mentioned year, the official said, “We managed to collect 250 trillion rials (about $5.9 billion) as value-added tax (VAT)”.

“One of the most important achievements of the Ministry of Finance and Economic Affairs in recent years has been the smartening of the tax system, the most important outcome of which has been the complete realization of the tax income plan,” Parsa has said.

The country also managed to collect 1.09 quadrillion rials (about $25.952 billion) of tax revenues during the Iranian calendar year of 1397 (ended on March 20, 2019), showing that the country’s annual tax income plan came true by 97 percent.

The realization of tax income plans in recent years has taken place in the condition that the country is facing severe economic sanctions.

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IRAN NEWS ECONOMIC DESK

TEHRAN – Minister of Finance and Economic Affairs Farhad Dejpasand says national economy is grappling with politicization and the only cure for it is the interaction and professional performance with calmness.

Speaking in the 100th meeting of Government Council of Dialogue With Private Sector, the minister said he definitely believes national economy is caught with politicization and the only solution for it is interaction and professional performance accompanied with calmness.

He added that all should talk in a way that their remarks become solution, adding remarks to please few people are not the solution.

Dejpasand went on to say that he is not to win hearts of the private sector or confront with while it is a serious economic part of the country, adding he believes  if the government opens the way for more effective activities of the private sector, then the country will obtain favorable results.

He claimed the current growth of non-oil exports of the country in the Coronavirus era is a proof for the effectiveness of holding these meetings.

He noted that maybe it would become hard to believe this fact that in the coronavirus era the national economic growth has registered a positive one based on the statistics of the Central Bank either with or without oil sales, but it is true.

Dejpasand added that fortunately some job losses which had happened in the first quarter of the year due to the pandemic were recovered later and the unemployment rate declined.

Touching upon some ambiguities regarding the next year budget plan, he pointed to some items in the budget bill and explained, calling for necessity of economizing and reducing expenditures.

He also reiterated that he is opposed to the idea of increasing the tax revenues for the next year government revenues, adding that since there is no specific definition for the new bases of getting taxes or reducing tax exemption, the increase in the tax will mean more pressure on the private sector in the coronavirus era.

He also hailed the performance of the Tax Affairs Organization last year in materializing 102 percent tax revenues and its over 100 percent of this year’s revenues without increasing pressure on the weaker layers of the society.

Dejpasand admitted that about 40 percent of the total GDP of the country is exempt from paying tax.

On the current ups and downs in the stock market, he said Securities and Exchange Organization dealt properly with 160 stock market publishers which had violated the rules and some of them were penalized.

He reiterated that the Securities and Exchange Organization is determined to bring back stability to the capital markets by taking proper measures.

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IRAN NEWS ECONOMIC DESK

TEHRAN – Iran’s Finance and Economic Affairs Minister Farhad Dejpasand has said that Corona’s disease had damaged the country’s GDP by 15 percent.

Speaking in the Majlis open session and referring to the sanctions on the country’s oil exports in a public session of the parliament, Dejpasand admitted that the virus pandemic has damaged the GDP of the country by 15 percent.

He went on to say, “Even if oil exports are done without sanctions and problems, we will still not have access to all incomes, so this year we must experience a non-oil budget and rely on tax revenue.”

Emphasizing on avoiding borrowing from the central bank, he said, “We have a comprehensive plan not to resort the option. Borrowing from the central bank is harmful. The capital market has matured today and can meet needs.”

Dejpasand noted that the country’s economic growth last year was negative, including oil, and that stimulus policy should be applied to improve economic conditions.

He also said that the ministry is working on drawing up a bill for attracting investments of overseas Iranians.

He claimed Iran’s foreign trade is in good condition and positive despite all enemies’ sabotages, and non-oil exports were according the schedule last year.

Dejpasand reiterated that Iran’s foreign traded faced the least effect of enemies’ mischiefs while they had targeted the country’s foreign trade.

He noted that since this year has been named as year of Surge in Production, all are assigned to focus on pick-up and surge in production, adding that national economy is facing threats and problems and in this condition, the country should take advantage of its production capacities properly.

He admitted that in the past eight years, the growth in investment has been negative and it is concerning and for this reason the government is working on a bill for attracting investment especially from Iranians abroad.

Dejpasand reiterated that enemies are working hard to bring Iran’s economy down and all should work together to disappoint them by boosting production.

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IRAN NEWS ECONOMIC DESK

TEHRAN – Finance and Economic Affairs Minister Farhad Dejpasand believes smart economy can be the only option for surge in production, adding that the government is to reconsider about ownership of at least 20 percent of properties.

In meeting with First Vice-President Eshaq Jahangiri, Mr. Dejpasand said that the government is to reconsider in ownership of  20 percent of its government, adding that the government is after easing the customs process by removing harmful and unnecessary supervisions.

After presenting a report on the national economy and the ministry’s performance, he said that the goal behind attracting foreign investment is not only for filling the gap of investment in the market but foreign investment is a tool and mechanism for transfer of technology to the country and to help the growth and effective development and boost efficiency.

He added that the minister moves, while he is restricted, and any minister is in charge only for a certain period but he and his ministry should ease the business climate otherwise it will disappoint the investors.

Dejpasand reiterated that all issues for investment from its A to Z should be eased for investor in order that he does not need to go to the ministry. He added that the ministry did considerable efforts last year and this year in cooperation with the Judiciary it wants to launch a trade court as well as a unified e-window for trade which gives this opportunity to investors to get necessary licenses without going to the offices.

He admitted that executive bodies are still involved in bureaucracy and some of licenses act like hurdles and they should be removed.

Dejpasand added that the government has started measures to remove hurdles in way of investment and undoing the ties and called for a smart economy.

He reiterated that smart economy is not just a slogan and some people think it is a fantasy while it is the only shortcut for the surge in production.

He stated that his ministry’s model is not Malaysian economy but if Malaysian Prime Minister Mahathir Mohamad had not digitalized Malaysia’s economy, the country would have not achieved such a progress.

Dejpasand added that in 1982, Iran was at the top and Malaysia was very lower but today any Iranian citizen is proud of going to Malaysia to study in Malaysian universities.

He said today 58 percent of economic activists are involved in the green corridor of the Customs Administration, noting if the blue corridor in the Customs Administration is launched, most of harmful supervisions will be removed, emphasizing the customs system should be smartized.

He concluded if only 20 percent of the government properties is privatized and joins the economic cycle, it will boost the economy.

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IRAN NEWS NATIONAL DESK

TEHRAN – First Vice-President Eshaq Jahangiri said on Saturday that the Iranian economy grew last year despite all the pressures on the country.

Speaking during a meeting with Minister of Economy Farhad Dejpasand and his deputies in Tehran, Jahangiri referred to pressure of US sanctions on the country. However, he noted that the inflation rate became decreasing in the third quarter of the last Iranian calendar year.

He said that the country’s economic growth became positive both including oil and excluding oil during the third quarter of the year, so that it witnessed a 3.3% economic growth excluding oil and a 1.3% economic growth including oil revenue.

The country’s economic growth over the first three quarters of the past Iranian year was positive excluding oil and negative including oil, the vice-president said.

He said that some 470,000 jobs were created in Iran over the past year so that the country’s unemployment rate experienced a rise during the period.

While the Iranian officials hoped a more reduced inflation rate, a better economic growth and an improved unemployment rate as well as foreign investment in the new year, the country faced the coronavirus disease outbreak which is globally regarded as an important concern, Jahangiri said.

It is said that the post-coronavirus world will be much different from the pre-coronavirus world, the official said, noting that the phenomenon will most probably leave decisive impacts on the world order.

Jahangiri even cited some European and American officials as saying that the coronavirus outbreak has been the greatest challenge facing the human kind after the World War II.

The pandemic is any way regarding as the greatest global challenge which everyone is predicting leading to serious economic recession in world economies, the vice-president said.

He also emphasized that the more transparent the performance of the companies and the more they are available to the public, the more efficient they will be.

Jahniri noted that as much as managers are concerned about top managers, they are 10 times more likely to be concerned by public opinion because they know everyone has a fair judgment about their management.

He said that state-owned companies are a large group whose assets are several times the budget of the country, adding that the Ministry of Economy is doing good work for state-owned companies to make a big difference.

“2,700 thousand billion tomans are their assets. When these companies are the assets of the government, it means that every year they must give a benefit to the government so that the government spends in the budget,” Jahangiri added.

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According To Iran News, Iran’s President Hassan Rouhani instructed the Economy Ministry to speed up the discharge of medical goods from the country’s customs offices.

In a phone conversation with Farhad Dejpasand, Rouhani assigned the Iranian economy minister to employ the entire potential of the ministry’s affiliates to help facilitate and speed up the discharge of all types of goods, particularly medical and treatment supplies, amid the country’s battle against the coronavirus.

The Iranian president also called on the minister to take the necessary measures so that the government can offer its properties on the stock market.

The Iranian government plans to sell assets worth 500 trillion rials ($3.7 billion), an eleven-fold increase compared with the preceding year.

On April 4, Rouhani unveiled a plan for smart social distancing across the country as a new phase of measures to prevent the spread of coronavirus. One day later, he announced that low-risk economic activities would resume from April 11.

The president has repeatedly called on Iranians to stay indoors, noting that social-distancing and self-quarantining have helped the country’s health authorities make major breakthroughs in their battle against the viral infection.

The disease has so far killed 4,110 people and infected over 66,220 others in Iran. Nearly 32,300 people have also recovered.

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IRAN NEWS ECONOMIC DESK

Minister of Economic Affairs and Finance said that in the first 9 months of this current Iranian year (will end on March 20, 2020), the amount of foreign investment increased by 32 percent compared to the same period last year.

Enemies are standing up and using all their might to confront Iran, but Iran has been able to counter these threats by using its capabilities and capacities, said Farhad Dejpasand at the Melli Bank’s third “Melli Show” on Wednesday evening.

Enemies have been trying to change the Iranian political system in three months after the start of the sanctions, but today, about a year and three months after that, the enemies have failed to achieve their goals, he said.

Dejpasand noted that people in the funeral of Lieutenant General Qasem Soleimani, while well supporting the system, showed their loyalty to the martyr, and he enemies realized that the Islamic Republic’s system was consolidated in Iran and the region.

He added, “This year, 10 months into the year, despite all the restrictions, sanctions and disruptions that have been made to prevent Iran’s foreign trade and exports, the volume of foreign trade is similar to last year and its slight change has been due to changes in the value of some exported products.”

He also pointed to the opportunities and capabilities of the country in different fields, adding that Iran enjoys having vast markets in neighboring countries which can help the country during the sanctions era.

Dejpasand admitted that the productivity rate in the country is lower than 50 percent while the figure should be at least 75 percent.

The official also noted that the country’s non-oil exports during the first 10 months of the current Iranian calendar year (March 21, 2019-January 20, 2020) have experienced a 20-percent rise in terms of weight.

The value of the country’s foreign trade hasn’t changed in the mentioned period compared to the figure for last year’s nine-months, according to Dejpasand.

He further mentioned the significant role of banks in the expansion of the country’s economy, saying that by diversifying banking services, revenue can be increased by 30 to 50 percent, while using Artificial Intelligence (AI) in banks can increase revenues by 17 percent and reduce costs by 25 percent.

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IRAN NEWS ECONOMIC DESK

TEHRAN – Iranian economy minister said that his country’s actions against money laundering have been widely effective.

Farhad Dejpasand during his meeting with European and Asian diplomats in Tehran said on that Iran’s actions against money laundering have been effective.

However, he expressed doubt about speculations that the U.S. misuse of the FATF system will further pressure Iran.

Dejpasand mentioned that countries such as the U.S. have been trying to use the FATF as a tool to pressure Iran.

He also blasted the U.S. President for his unilateral pullout of the JCPOA, adding that because of his behavior, the climate of mistrust has been created in the country over the signing the FATF and Palermo bills.

He went on to say that even during some natural disasters like quake and flood, the U.S. restrictions have been major hurdle for other countries’ aids.

Dejpasand added that how one can endanger the lives of people by his illegal imposition of sanctions or restriction of financial exchanges.

On signing the FATF or Palermo bills, he questioned the guarantee about the fate of signing the bills when the U.S. unilaterally leaves the international agreements.

He also said that the role of independent European and Asian states for strengthening international rules and respecting the rights of nations especially Iran’s measures in combatting money laundering should be considered seriously.

Dejpasand also noted that the U.S. unilateralism is the biggest hurdle in way of rights’ of nations for free trade and financial exchanges in international level.

Meanwhile Vice-President for Legal Affairs Laiya Joneidi, for her part, said that FATF and Palermo bills have been ratified in Majlis but after U.S. illegal exit from the JCPOA, the Expediency Council has delayed the final approval and it is assessing all aspects of the approval.

She reiterated that Iran is determined to approve the bills because the country itself is the victim of terrorism and the organized crimes. She went on to say that Iran is after transparency and it wants transparency to be materialized.

Meanwhile some diplomats president in the meeting praised Iran’s measures in combatting money laundering and announced their countries’ readiness for any cooperation with Iran.

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A special Working Group, comprised of representatives of government, Parliament and private sector, will remove problems facing repatriation of export currency into the country, he added.

He made the remarks late on Monday in a Council of Dialogue between public and private sectors and pointed to the revising methods behind repatriation of export currency as major concern of some economic activists and added, “for settling the problem, a special Working Group will be set up in the presence of deputy minister of economy, deputy governor of Central Bank of Iran (CBI), representative of the Judiciary branch, representative of Iran Chamber of Commerce (ICC) and deputy minister of industry.”

Of total $5 billion export currency repatriated into economy of the country in the same period, Small- and Medium-sized Enterprises (SMEs) accounted for $1 billion of this rate, he opined.

Some $18.5 billion worth of export currency has been repatriated into the country since last year (ended March 20, 2019) up to the present time, economy minister highlighted.

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