I would agree however a question has been raised so at this point the story it is neither confirmed True or confirmed Hoax
The link posted above that questions the story http://www.israpundit.com/2006/?p=1200
States it got it tip from historymike's musings (not sure but it may tend to be a progressive left site)
http://historymike.blogspot.com/2006/05/dispute-over-report-of-iran-requiring.html
So bottom line the story and it's "it's a Hoax" counter are both echoing all over the net at this point....so it may take a bit to confirm what is and is not....monitoring
Majlis passes bill setting out new dress requirement
Tehran, May 15, IRNA Iran-Fashion-Majlis bill
Majlis deputies here on Sunday approved the outlines of a bill setting out a dress code suitable for Iranian culture and society and a national fashion trend.
When the bill is passed into law, a committee composed of representatives from the ministries of culture, commerce and industries as well as the Management and Plan Organization, Islamic Republic of Iran Broadcasting (IRIB) and Majlis Cultural Commission is to be created.
The culture ministry and IRIB will have the primary responsbility of promoting the required dress or clothing design as confirmed by the committee and prevent Western-style fashion that are against Islamic teachings.
After the law is passed, the culture ministry, with the help of the ministry of commerce, will hold national, regional and international festivals and exhibitions to promote cultural exchanges, including Islamic fashion, among Muslim nations.
Seasonal fairs will be held by the commerce ministry to introduce as well as promote sales of Islamic dresses and garments to the public.
The national dress plan was approved in Majlis by 137 votes in favor, 45 against, and 11 abstentions.