Export priority VAT refund

Export priority VAT refund
  • 2020-02-01
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The head of the tax affairs agency put the value added tax return on the organization's top priority and said: "We need to move towards smart taxation in order to get fair taxation."

Omid Ali Parsa at a breakfast meeting with economic activists, pointing out that the only source of revenue for the tax administration, said: "Only if taxes can be levied on various economic sectors of the country where production, economy and export boom. And taxation on the basis of it, while a leading government, in which more than ninety-five percent of the population sincerely declares and the tax rates pursue their tax goals.

He added: "Taxes should be tax-deductible and proportionate to income, wealth and consumption, so that those five percent of the population do not pay taxes. They should be caught in a way that they prefer to pay their taxes on time." In order to exercise its sovereignty, every state must control twenty to twenty-five percent of the total GDP to ensure security, order, justice and public goods.

The head of the tax affairs office said that in Iran, between seven and eight percent of society's income is given to the government as a tax, and it is clear that this figure does not cover all the necessary measures: Taxes have access to all information on income, production, exports, imports, transactions and accounts and are smartly taxed. As smart taxpayer platforms are available in the world, tax organizations receive taxpayers from the people and there is tax justice, while in these countries, there is no tax evasion.

Parsa pointed out: Taxation in the country is completely electronic, although it should be noted that electronic taxation is different from smart taxation, because in the smart tax system, the Tax Office has access to all information and there is no way to escape taxation.

He added: "The law provides that no government or nongovernmental organization has any excuse for not providing information to the tax administration, while a new draft law on direct taxation has been drafted in the tax administration, which regulates the exemptions." The design of new tax bases, including capital gains tax and total income tax, is considered.

Director of Tax Affairs stated: In the world we do not see complete exemptions of economic sectors, maybe 80% of agricultural activists in Iran are weak and should be tax exempt, but 10% of activists in this sector have a good income and have to pay taxes. This is while the general budget of the whole country is four hundred and eighty four billion dollars. To finance it, the government must either tax, borrow and repay it, print money or sell natural resources and real estate.

The Deputy Minister of Economy emphasized that the system's orientation is to move Iran toward smart tax and fourth generation tax evasion and tax evasion and corruption, adding that the issue of VAT refunds from exporters should also be addressed. To say the VAT collection is a package and VAT refund is the fastest possible and most convenient way is the policy of the tax office. Therefore, the Tax Administration believes that export VAT refunds should be returned promptly.

He continued: Part of the work falls within the purview of the Tax Administration and we cannot make regulations for the Ministry of Finance and the Central Bank, but we must spend the tax collected on the priority of VAT refunds. I direct myself to place the first priority on spending tax deduction on VAT refunds. However, we will first make a VAT refund and then deposit our income into the treasury.

* Tasnim