[This report focuses on 7 key problematic issues in Iran’s 2018 Budget Bill.]
Reporter: Yesterday, Hassan Rouhani went to the Parliament to offer 2018 Budget Bill to this entity for ratification. One of the most important incidents in 2018 Budget was an unprecedented increase of departure tax, which faced many different reactions. But let’s go over 7 other points from 2018 Budget Bill. 30 million people will be eliminated from the list of those who receive cash subsidies. In this bill, the government has cut 48 thousand billion tomans to 37 thousand billion tomans for cash and non-cash subsidies. And out of this amount, 23 thousand billion tomans will be distributed as cash and non-cash subsidies, and the rest will be given by Imam Khomeini Relief Foundation and Welfare Organization to people who are under the coverage of these entities.
Tax revenues will increase 12 thousand billion tomans. The government predicts 12 thousand billion tomans increase and earning 128 thousand billion tomans, which means owners of businesses must pay more taxes, or perhaps the government has a plan for catching tax evaders.
The full half of the glass is that government’s reliance on oil budget has decreased. As for those who receive salaries, they will be exempted from taxes up to 2 million tomans. The budget for civil projects will have 11 thousand billion tomans decrease, which means that big contractor companies must not count too much on government’s projects. It seems that housing ministry has the largest share, with 1600 billion tomans cut.
The details of this decrease have not been published yet. But perhaps with this budget, the Mehr Housing Project will still remain incomplete. It is interesting that the budget of road and transportation organization has doubled. But as for importing automobiles, the government is counting on 1000 billion tomans more income from importing automobiles, which means imported cars will become more expensive. Or it is possible that industry ministry would ignore stopping registering orders for automobiles to increase the number of imported cars. And this might bring about increasing the revenue in 2018 Budget.
Purchasing compulsory military service will remain the same. Like last year, those with 8 years of absence from compulsory military service will be exempted from this service by paying fine in installment. The other news is that Table 17 has been eliminated, and its amount will be given to the ministry of guidance. This means that all institutions that have so far received cultural budget independently and have not been accountable to anyone should now take their budgets from the ministry of guidance.
As a result, the budget of the ministry of guidance with 132 billion tomans increase will reach 1,312 billion tomans. There is an increase in gas, electricity, and water – 200 tomans on the gas bill, 100 on electricity bill for each residential unit, 200 tomans on each cubic meter of water. But these amounts have been under the title of insurance for incidents related to these fields and financial losses and casualties.