Iranian Government Amends the National Budget to decrease VAT of some essential Goods.
Nouraei & M. Mostafavi Law Offices –May 7,2023-Tehran –To cope with the high inflations and the escalating price of consumer goods, the Government has decided to lower the VAT of certain consumer items by amending part of the current National Budget law.
According to the Office of the President’s Legal Deputy, the Bill of Adding a Clause to Note (6) of the National Budget Law of the year 1402( March 21, 2023- March 19, 2024) has been sent to the parliament to be approved urgently. Particulars of the bill No. 61201/23761 dated 17/2/1402 (7 May 2023) are as follows:
Dear. Dr. Qalibaf
Honorable Speaker of the Islamic Consultative Majlis (parliament) of the Islamic Council
With regards, the bill “Adding a Clause to Note (6) of the National Budget law of the year 1402, which was proposed by the Economic Vice President and approved with double urgency in the meeting of the Council of Ministers held on 6/2/1402 (April 26,2023), it is submitted as an attachment for the adoption of legal formalities.
Seyyed Ebrahim Raisi
Concerning the Supreme Leader’s order to take the necessary measures for curbing inflation and helping production growth in the year 1402 and in line with the reduction of the value-added tax rate of essential goods, to prevent the increase of the price of such goods and managing the cost of the household basket, the following bill, which the Supreme Council of Economic Coordination approved it in its eighty-third session (16/2/1402 = May 6,2023), is submitted for the adoption of the related legal formalities:
The Bill Adding a Clause to Note (6) of the National Budget Law of 1402
Single article – The following text is added as paragraph (J) to note (6) of the National Budget law of the year 1402:
J – In 1402, the value-added tax rate for the import of essential medicines and medical equipment that do not have similar domestic production, wheat, rice, oilseeds, all kinds of crude oil, legumes (including lentils, peas, beans, and mung beans), cube sugar, sugar, chicken meat, red meat, tea, as well as the rate of the value-added tax on domestically produced cube sugar and sugar will be reduced to one percent (1%).
(Re-publication and usage wholly or partially allowed upon naming the source J. Nouraei & M. Mostafavi Law Offices).