Coll 28/3(2) ‘Persia. Financial situation.’ [‎21v] (42/817)

income tax law exempts from taxation through increased deductions persons in the
lower income brackets who formerly paid the tax. It also exempts government employ
ees. These two classes in the past paid a considerable part of the total collections
in the provinces. In addition, many localities have no industries. The tax on agricul
tural income was expected to replace the 3 per cent tax. However, the procedure
for collecting the tax on agricultural income requires extensive surveys; and this
tax is not likely to produce much revenue for several months. Moreover, in several
regions finance Agents report that it is impossible to make the surveys on account
of disorder. Ahwaz and Kerman show an increase in income tax receipts for the first
four months of the year; and it is expected that those districts where the income
is predominantly from agricultural sources will make a better showing as the sur
veys proceed and collections of the tax from agricultural incomes can be carried out.
Up to the end of Shahrivar the tax programme for the municipalities was still
under discussion, and no definite decision had been reached. The proposals made
to the representatives of the Ministry of Interior provided for increased rates on
some existing taxes, the transference of some of the Government taxes to the
municipalities and the levying of certain new taxes. The proposal also provided
for the elimination of the municipal tax on petroleum products and an equivalent
increase in the Government tax on those products. Due to the failure of the income
tax in the provinces to produce sufficient revenue so that the municipalities’ ten
P<t cent of that tax would compensate for the loss of revenue through the annul
ment of the weighing tax, many municipalities were in financial difficulties. It is
hoped that before the end of Mehr a solution of the problem can be reached.
Receipts from indirect taxes in the Tehran district amounted to RIs. 19,380,996.95
during the month under review, compared with Rls. 17,287,340.60 during the
corresponding month last year, an increase of Rls. 2,093,656.35, or 12 percent. In
creases were recorded for the tax on petroleum products, excise on alchool and
carriage tax. In addition to the abolished taxes, which naturally brought in no
revenue, there was a decrease in receipts from the slaughter tax, bicycle tax, auc
tion tax and miscellaneous revenues.
.o, 7 » C ^on fr0mdir2C ,' ‘Tn, in Tellran during Shahrivar amounted to Rls.
19,178,346.90 compared w.th Rls, 15,391,854.66 during the same period last year
^ 8 ^°r 24 percent, tncome tax accoumed for Rls.
18,809,464.10 of the amount collected.
During the month a total of 8,792 inspections were made, which tonether
with those previously made, brought the total to 18,929. On the basis of the inspec-
t.ons, the Assessment Section is now issuing approximately 150 tax notices a day
oveMasTyear ''"‘"H’' ^ Petr0leUm Pr ° dUCtS Com '" ue ^ow an increase
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