MP warns about delayed or hasty execution of subsidy reform plan in Iran

TEHRAN, Sept. 12 (MNA) – MP Alireza Mahjoub has warned on Saturday against a delayed or hasty implementation of the subsidy reform plan, a move which will lead to price rises.

Postponing the implementation of the plan will add to psychological pressure on the society which is already living in a fear of price rises, Mahjoub, a pro-worker lawmaker, told the Mehr News Agency.

On the other hand, the plan will face several problems if it is implemented hastily, he added.

The MP suggested that first a small segment of the plan be implemented and then it is fully put into practice to reduce its inflationary pressure on the public.

Mahjoub has been an opponent of the subsidy reform plan.

“I’m of the view that the implementation of the subsidy reform plan is not practical”, said Mahjoub, a member of the Majlis Social Commission.

Subsidy reform plan allows the government to phase out energy and food subsidies and redirect the savings into the production sector.

President Ahmadinejad believes his government will save up to 30 percent of its annual budget by cutting back on subsidies on gasoline and other refined products, natural gas, electricity, water, and bread.

The president had formerly announced that the plan will be implemented in the second half of the Iranian calendar year which started on March 21.