Tehran, Iran – Iranian authorities are introducing an electronic coupon scheme to address the current economic challenges exacerbated by sanctions. Simultaneously, they are increasing taxes to cover budget deficits. As the Nowruz shopping and travel season approaches, President Masoud Pezeshkian’s government is reviving the online coupons scheme.
The use of coupons in Iran dates back to World War II when the country faced economic difficulties and famine. Coupons were widely used after the 1979 revolution during the eight-year war with Iraq. Starting this week, low-income and middle-class Iranians will receive up to 5 million rials, which can be used to purchase limited quantities of essential food items at government prices. About 60 million people are eligible to use the credit.
While the coupons aim to alleviate short-term pressure on families, the government is also increasing taxes and costs of services. The approved budget for the Iranian calendar year 1404 shows increased taxes and service costs compounded by the country’s 35 percent inflation rate.
Over the years, Iranian governments have been seeking alternative sources of revenue, including through tax increases, to decrease the country’s dependency on oil revenues, which have been affected by the “maximum pressure” tactics implemented by the United States.
The government currently pays 73 percent of its expenses using tax revenues. Total government tax revenues are expected to increase by 53 percent in the fiscal year 1404 compared to the previous year, the highest jump in a decade. There are also significant increases in corporate income tax, income from personal income taxes, and wealth and property taxes.
Taxes on imports will also increase, with a significant part of the increase related to government revenues from imports of new or used foreign vehicles following the lifting of a years-long ban in 2022. High taxes will also be imposed during the holy Muslim month of Ramadan, with restaurants and hotels needing to pay for permits and ensuring no one breaks their fast publicly.
As part of efforts to cut costs and increase revenues, the government is also making services more expensive. Fees for national IDs, passports, vehicle registrations, and university and technical exams are expected to rise. Traffic fines, departure levies, and penalties against individuals deemed to have violated mandatory hijab laws will also increase.
Additionally, the government plans to make services offered to millions of migrants and refugees more expensive, including costs of issuing or renewing travel and work permits. These price increases will mostly impact migrants and refugees from neighboring Afghanistan, whose numbers have significantly increased since the Taliban took over in 2021.
Source: https://www.aljazeera.com/news/2025/3/11/irans-coupons-and-taxes-giving-with-one-hand-taking-with-the-other?traffic_source=rss
