Government of Iran (conditionally) relieves co-operatives from delayed payment of value added tax.
In a move to bolster national confidence in the co-operative sector, the head of Iran’s National Tax Administration (NTA), Mr. Kamel Taqavinejad announced that co-operatives will be granted a complete waiver from penalties if they paid their taxes before the end of March 20, 2017. This announcement relieves a number of co-operatives who, among other businesses were penalized for non-payment of taxes within the stipulated time frame. Mr. Bahman Abdollahi, head of Alliance member – Iran Chamber of co-operatives (ICC), believe this ‘co-operatively positive’ policy can be attributed to the development role and responsibility that the co-operative sector in Iran has been accorded. 160,000 cooperatives have been registered in Iran, of which 110,000 are operating in 120 fields of activity, including agriculture, services, housing, transportation and production, among others. Iran aims to increase the contribution of co-operatives from 7% to 25 % under the fifth national five year development plan that ended in 2015. These development plans are devised by the government and ratified by the Iranian parliament every five years and are to provide broad directions on wide ranging economic reforms and social priorities. The head of the NTA is reported to have said during a joint meeting with the ICC, that was attended by heads of various co-operative unions that co-operatives and relevant stakeholders in the co-operative economy will be consulted in the decisions and policy making processes that concern the sector in the country. This does seem to be in line with ILO Recommendation 193. Providing complete relief to co-operatives on delayed tax (VAT) payments is indeed an assertion of the Iranian government’s position to give a ‘shot in the arm’ to the co-operative movement in Iran. (with input from Alireza Banaeifar, ICC)
