TEHRAN:The International Monetary Fund (IMF) has welcomed Iran’s proposed measures to consolidate fiscal policy in light of the sharp decline in oil revenues.
An IMF team visited Tehran to conduct the 2014 Article IV Consultation discussions. Following the visit, Martin Cerisola, leader of the IMF team, praised Iran’s decision to increase the scheduled value-added tax (VAT) rate.
He also commended reforms to strengthen tax administration, including the reform of tax exemptions for large non-taxpayers. Mr Cerisola noted that there is scope to further increase the VAT rate in the years ahead, as well as to introduce a capital gains tax on specific activities that have experienced large gains. These measures would help to improve the quality of the fiscal adjustment and help lay the ground for a sustainable fiscal policy ahead.
The team exchanged views with senior officials of the Central Bank of Iran (CBI) and Ministry of Economy and Finance on recent developments in the Iranian economy, the near-term outlook, and the authorities’ macroeconomic plans and structural reform agenda. The IMF team also met with a wide range of public and private sector representatives. Based on the visit, a staff report will be prepared and presented to the IMF’s Executive Board in late March.
