News   /   Economy

Iran estimates tax cheats costing the country $4.5bn a year

Iran’s tax body estimates that evasions may total the equivalent of $4.5 billion per year.

The Iranian National Tax Administration (INTA) estimates that tax evasions in the country can amount to around half of its revenues at around $4.5 billion as the government moves to crack down on tax cheats to offset revenue losses suffered because of US sanctions on crude sales in recent years.

INTA chief Davud Manzour said on Monday that tax evasions in Iran are estimated at around 1,350 trillion rials, saying the figure amounts to 50% of the tax collected in the country each year.

Manzur said that the government is continuing to invest in new data systems that could lead to a major reduction in tax cheats.

That comes as other officials in the Iranian government have announced plans for carrying out reforms in the Iran’s taxation system as they insist those reforms would reduce tax evasions and lead to an increase in INTA’s receipts.

A draft budget announced for the calendar year starting late March includes sweeping taxes on owners of luxury properties, including homes that are worth over 100 billion rials (over $0.33 million).

Manzur said the INTA is readying the data banks needed to enforce the new tax in early March.

He said another new tax scheme for vacant homes will go into effect as soon as Iran’s housing ministry submits data on those properties.

Expanding taxation revenues is in line with the Iranian government’s efforts to diversify the economy away from crude revenues and to offset the impacts of American sanctions on oil exports.

INTA figures show its total tax receipts for the calendar year to March 2021 had amounted to 1,920 trillion rials or $7.6 billion on currency prices reported at the time.

Press TV’s website can also be accessed at the following alternate addresses:

Press TV News Roku