Posted on 09/27/2015 4:48:23 PM PDT by Brad from Tennessee
The Iranian government is earning more from tax than oil for the first time in almost half a century as the country shifts its traditional reliance on crude to taxation revenues in the face of plummeting oil prices.
President Hassan Rouhanis economic strategy is to significantly reduce the governments dependency on oil and instead collect tax more systematically, according to Ali Kardor, the deputy managing director of the national Iranian oil company (NIOC).
For the first time in 50 years, the governments share of the oil revenue is less than what it is earning from tax, including VAT, he told the Guardian on the sidelines of the second Europe-Iran forum in Geneva. Only around 10% of Irans GDP is currently dependent on oil. Almost 20% of oil income goes into a sovereign wealth fund, which is reserved for development purposes.
Irans oil revenue took a heavy toll in recent years from the oil embargo imposed on Tehran by the EU and US over its nuclear programme and latterly because of falling global crude prices. Sanctions are expected to be lifted when the UN nuclear watchdog verifies Tehran has taken the necessary measures to roll back its nuclear activities as outlined under the landmark nuclear agreement struck in July. Rouhani said last week that could be as early as January. . .
(Excerpt) Read more at theguardian.com ...
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