Following the latest speeches of the Iranian regime’s president Ebrahim Raisi, the regime’s state media are expecting new and promising changes in Iran’s economy, hoping for improvement in the stock market, an increase in the incomes of Iranian workers, and that the resolution of many of the country’s crises.
However, they still remain skeptical as Raisi’s speeches did not provide any practical solutions for a way out of the present crises. Due to the existing problems and the taxes that have been imposed on the people, there is barely any chance of an increase in production or an economic boom.
As a result, whatever Raisi does, if he does anything at all, is likely to have very little effect on the country’s society and social affairs. One such example is the migration of inner-city dwellers to the outskirts of the cities. This, of course, will have social consequences and will likely further expand poverty, and subsequently involve the regime with security consequences that many of its media and officials are worried about or are warning about.
The impoverished middle class is already struggling to survive, having lost much of their purchasing power, leaving them looking towards migrating abroad in their droves for a better life.
The regime, on the other hand, is just adding to its mistakes as the country continues to lose its experts and capable professionals, and with it, the ability to solve the problems Iran is facing today. The government is simply clueless. On the assumption that they will collect wealth taxes, they put propositions in the budget that have nothing to do with economic principles and the welfare needs of society.
In an article discussing the confusing economic situation in Iran, the state-run Fararu daily wrote on January 27, “Someone bought a car for three or four billion rials about three years ago. The price of this car has suddenly jumped to over 10 billion rials due to the successive fluctuations of inflation, in which the people had no role. This person, who had been having trouble repairing his car, must pay a tax under the title of ‘luxury car’ to the government from 2022. In fact, we are facing a class in the country that can be classified as ‘penniless billionaires’.”
Exposing Iran’s weak economy and discussing the Iranian government’s criminal imposition of taxes on the impoverished classes, who are already suffering under the heavy burden of the uncontrollable inflation, the daily further stated, “lacking the power to deal with influential institutions with special relations, the government is shifting the tax burden to people who have already succumbed to inflationary shocks. At present, the rich of Iran and the merchants do not pay taxes but take full advantage of the inflationary conditions. As much as 2,300 trillion rials of energy subsidies are paid monthly. A significant part of this energy subsidy goes to the pockets of the affluent classes of society.”
Laying out details of Iran’s mass corruption, the Fararu daily highlighted that the increase of corruption, in turn, has had disastrous consequences for society. said it wrote, “…inequality, class divisions, public dissatisfaction, budget deficits, waste of financial resources, etc. have increased, and most importantly, productivity has disappeared.”
The daily also added, “The 20-year-old wealth tax plan has been on the table of MPs for 20 years and is decaying. Why are such important plans not approved? Creating such a plan requires transparency, and since some influential institutions in our country oppose the principle of transparency and find it problematic, this plan will not be approved. In such a situation, the people should be given the right to complain that the authorities intend to take from the pockets of the people to solve problems such as budget deficits, etc.”