VAT troubles for producers
An economist: This tax has really hit producers hard today, the way it is collected and the rate is wrong, we have only looked at that revenue part of the tax. We do not look at the problems it has created at all. Contrary to its purpose, this tax has not been successful in achieving transparency in the flow of goods.
According to the International Iranian Stone Exhibition, the replacement of stable tax revenue with the sale of oil is one of the most important approaches of the government. In recent years, however, this has been done very poorly. Instead of improving the situation of production and employment, income taxes have weakened the productive sector of the economy day by day, and now the weak body of the country's production is in the grip of increasing VAT. VAT, although considered a consumer tax, but by failing to contribute to the transparency of the flow of goods, has also dealt many blows to producers. Mistakes that even several books cannot write.
Today, we went to one of the economic experts in the field of business in the country to examine the various dimensions of VAT.
Mohammad Anbari, regarding the divine blessing of the problem of selling Iranian oil, said: "Currently, due to the conditions of sanctions, another country can not sell oil and has difficulty in selling it." This is a blessing in addition to the injuries it inflicts. It makes us think. Let's reform the tax system.
The producer pays taxes, but the merchant does not !!
Regarding the various aspects of reforming the country's tax system, the economist added: "The first aspect of reforming the tax system is securing the country's revenues and the expenses we have." The second and most important aspect is related to producers and facilitating the business environment and improving this business environment so that the Iranian producer can operate and not be hit and not lag behind compared to an importer and foreign goods. Unfortunately, the current tax system of our country today hits both the producer and on the other hand gives the intermediary, the trader and the broker the opportunity to express themselves and the opportunity to work. If we are to increase income taxes, first we must facilitate the business environment and second we must look for alternative solutions that reduce production costs and do not hit the producer.
Regarding regulatory taxes and the state of collection of such taxes in the country, Anbari said: "Regulatory tools in taxes are not a new topic." The roots of this go back to a hundred years ago when developed countries began to levy capital gain tax (CGT) or capital gains tax. The capital gains tax is a tax that comes to control the same business that is emerging today, circulating in all parallel production markets and creating price turmoil. However, we have taken it to the approval stage 10 times in the parliament, but at the same time, those in power and influential people are lowering this tax plan, suspending it, not allowing it to be approved, but these taxes are not income.
Regulatory taxes are not revenue-generating
Referring to the objectives of collecting regulatory taxes, he said: "The purpose of regulatory taxes is to improve the economy, improve the business environment and improve the productive environment." They are supposed to control and eliminate things that are not useful in society. Regulatory tax revenues cannot be relied on to offset the country's revenues, although they do have revenues. Our approach to regulatory taxes is not to increase income taxes at all.
VAT is the first tax problem for manufacturers
Regarding the need to change the approach to current income taxes and reduce production taxes, the economist added: "An active approach should replace the current taxes, reform the current method of collecting income taxes and replace these taxes with new taxes such as transaction taxes." The model of taxation on performance, value added and the like must be reformed. Production is currently suffering severely. Producers are screaming at the hands of these taxpayers and wealthy people today.
Costly transparency will not succeed
Anbari, in connection with the many problems of collecting VAT, said: "This tax has become an income tax for the producer, which has taken the breath away from production." In my opinion, in the short term, its number and figure must be reduced so that there is an opportunity for reform. Any tax is successful when transparency does not cost the people, transparency that is costly will not succeed.
* ISNA
