The cabinet recently approved a new law permitting all bank account profits to be tax-exempt, according to the governor of Iran’s Central Bank. The government also approved a tax-exemption on private banks and credit institutions profits.
The new law was passed following a proposal by the Ministry of Economy and Finance, suggesting that bank profits be subject to a maximum tax of 15 percent. Had the proposal been accepted, stated economic expert Bijan Bidabadi, it would have discouraged investments — thus leading to a reduction in bank deposits.
"Investors would divert their investments to sectors with high liquidity" added Bidabadi. He concluded that taxation on bank profits is the appropriate approach — rather the government should opt to levy taxes on other sources of public investments. ― (Albawaba-MEBG)
