Iran’s 1404 Budget: Economic Desperation and Burden on Citizens
Iran’s 1404 budget outlines drastic economic measures including a 53% tax hike, aimed at compensating for financial crises caused by international sanctions. This places an immense burden on citizens, prioritizing military and religious spending over public welfare, further deepening poverty and social discontent.
The Iranian regime’s 1404 budget, which spans from March 2025 to March 2026, signifies a response to its deepening economic crisis. Estranged by international sanctions, the government is implementing drastic tax increases, exorbitant fines, and heightened service fees. The regime aims to extract financial support from its citizens to counterbalance the impacts of sanctions and longstanding financial mismanagement.
The proposed budget forecast sets tax revenues at 2084 trillion tomans, symbolizing a staggering 53% rise from the previous year. The regime is notably increasing corporate taxes by 73%, personal income taxes by 68%, and consumption taxes by 22%, further undermining the already diminished purchasing power of the populace. Despite the regime’s justification of these hikes as necessary to reduce debt and inflation, domestic media attribute the underlying economic failures to corruption and mismanagement.
The budget presumes an exchange rate of 75,000 tomans per U.S. dollar, forecasting a significant devaluation of the national currency. Although the government anticipates oil sales at $70 per barrel, experts caution that sanctions and restrictive financial policies may prevent the realization of these revenues, thereby exacerbating living costs for basic essentials including food, medicine, and fuel amidst rising poverty rates.
As traditional income sources dwindle under sanctions, the government has intensified financial burdens on its citizens through various measures. There are steep increases in residency fees for foreign nationals, which rise by 500%, and massive hikes in the costs associated with travel permits. Additionally, the anticipated revenue from deportations showcases the regime’s priority to extract financial benefits at the expense of human rights, while exempting foreign clerical students from such fees.
Traffic fines and service fees have also seen immense increases, with a 60% hike in traffic penalties alone. Furthermore, registration fees for both foreign vehicles and motorcycles have witnessed exorbitant escalations of 650% and 650% respectively. The persistently high inflation rate of over 40% over the last decade exacerbates public dissatisfaction, particularly as wages fail to keep pace with these surging costs.
In the education sector, the regime has imposed higher examination fees, effectively more than doubling registration for vocational assessments and increasing dropout penalties. These developments disproportionately impact lower-income families, compounding the financial strains they already endure from costlier tuition and materials.
The new budget further discriminates between vehicle registers, imposing inflated fees on imported cars, which will rise significantly. Additionally, travelers will face increased exit taxes, reinforcing the government’s focus on religious funding rather than bolstering economic development via enhanced tourism infrastructure.
In summary, Iran’s 1404 budget reflects an alarming trend of economic desperation, with the regime exploiting its citizens through exorbitant taxes and fees amid international isolation. The significant financial burden imposed contributes to soaring living costs and deepening poverty. The regime’s prioritization of military and religious institutions over public welfare further exacerbates social discontent, underscoring a troubling trajectory for the Iranian populace as economic hardship continues to intensify.
Original Source: www.ncr-iran.org
