Iran’s budget for the 1404 fiscal year reveals the regime’s economic desperation through significant tax increases and fees, predominantly affecting the populace. With a projected 53% rise in tax revenue, the government prioritizes military and religious expenses, compounding the struggles of ordinary citizens amidst high inflation and international sanctions.
The Iranian regime’s budget for the 1404 fiscal year (March 2025 – March 2026) starkly outlines the government’s economic struggle, exacerbated by international sanctions and inflation. To fund its survival, the regime has imposed a series of aggressive tax hikes, inflated penalties, and increased service fees, prioritizing military and ideological expenditures over public welfare amidst a crushing economic landscape.
Projected tax revenues have reached 2084 trillion tomans, marking a staggering 53% increase from the prior year. This increase includes a 73% rise in corporate taxes, a 68% escalation in personal income taxes, and a 22% hike in consumption taxes, all expected to further diminish the purchasing power of citizens. Despite the regime’s claims that these measures will offset budget deficits, public media acknowledges widespread economic mismanagement and corruption as the underlying issues.
The budget’s reliance on a devalued currency underscores its precariousness. It assumes an exchange rate of 75,000 tomans to the U.S. dollar, while experts warn that sanctions will hinder revenue generation, leading to potential fiscal shortfalls. The instability of the Iranian rial will inevitably cause prices of essentials, such as food and medicine, to soar, further burdening ordinary citizens.
In light of constrained traditional revenue sources, the government has targeted several avenues for revenue extraction. These include exorbitant fee increases for residency services (up 500%), traffic fines (up 60%), and education fees (doubling for technical and vocational exams), all of which disproportionately affect lower-income families.
Additional measures, such as a 650% hike in regulatory fees for foreign vehicles and substantial exit taxes aimed at travelers, reveal a prioritization of ideological expenditures over economic development. Such policies divert funds away from vital infrastructure and address systemic social inequities that continue to plague the citizenry.
The overall strategy of the regime seems to entail further subjugating the Iranian populace financially while maintaining lavish funding for military and security institutions. This cycle of austerity for the citizens and excess for regime interests has engendered an environment of increasing inequality and unrest, suggesting a volatile future for Iranian society amidst its current economic plight.
The Iranian regime’s proposed 1404 budget exemplifies the desperate measures being taken to maintain its hold on power at the expense of its citizens. As tax rates escalate and essential goods become less affordable, public dissatisfaction is likely to rise. The regime’s prioritization of military and ideological funding over essential public services indicates a dangerous trajectory that could lead to further economic distress and social unrest.
Original Source: www.ncr-iran.org
