An Efficient Tax, Social Security System Absent In Iran’s Economy

Tehran, Sept 13, IRNA – An economic expert has referred to the recent IMF report that the wealthy people in Iran receive five times more subsidies than the poor and said Iran is a paradise for investors as the tax the rich pay is much less than the facilities they receive. Mehdi Pazouki told IRNA that the tax government employees and the private sector pay is more than that of traders who have exorbitant revenues and take maximum advantage of infrastructural facilities. “In fact, traders and businessmen do not pay any tax at all.” He said: “The reason that about 74 million people receive subsidies and except for 10 percent the remaining are not poor and do not need the money is absence of an efficient mechanism and system in the country.” The academic stressed that there is an efficient tax and social security system all over the world which administer fair distribution of revenues and this unfortunately is absent in Iran. “For example, in the Scandinavian countries those whose revenues are less than the average receive 'negative tax' or 'subsidies' and those with higher revenues must pay taxes.” Pazouki stressed that the president himself should honestly tell the people that the current form of subsidies would disturb administration of the state affairs and create further dependence on oil as part of the resources for subsidies are maintained through oil revenues./end