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What was the reason for the 30% reduction in the municipality’s share of VAT?


According to Fars News Agency, Meysam Mozaffar, Deputy Chairman of the Program and Budget Commission of Tehran City Council, during the 32nd session of the council, during a remark addressed to the Municipality of Tehran, said: 4% of the share of value added tax in the budget of 1400 is considered 3% belongs to Tehran Municipality, but unfortunately in a new action pursued by Tehran Governor’s and Tehran Management and Planning Organization in an interpretation contrary to paragraph (g) of Note 8 of the Budget Law of 1400 and Article 2 of the Executive Regulations in It predicts that the population of informal settlements located inside and outside the city of Tehran is based on 311 thousand people, and of these 311 thousand people, a share and a percentage for the governor of Tehran to organize informal settlements. Unfortunately, the Tehran Governor’s Office has recently estimated the population of informal settlements around Tehran at an unrealistic figure of 4 million.

He added: in this regard, the governor’s office has put a lot of pressure on the Management and Planning Organization of Tehran province to deduct 30% of the total value added from the municipality and provide it to the governor.

Muzaffar emphasized: This is a very acute event and it is much more dangerous than not allocating budgets and commitments of governments in the field of transportation, providing subway cars and buses, which was not included in the 1401 budget.

The head of the Budget and Financial Supervision Committee of the Islamic Council of Tehran continued: “Considering the current situation and the bitter incident that has been taking place in the past few months, we expect the Tehran Municipality to immediately prevent this from happening and the same population of 311,000 informal residents.” Around the city of Tehran, which is determined based on the official letter of the Ministry of Interior, the Management and Planning Organization of Tehran province should also be the criterion for action.

He emphasized: in case of such a situation, Tehran Municipality will face a very acute crisis in financing resources, this issue needs an urgent action and the General Inspection Organization and the Court of Audit should enter and the honorable chairman of the council and the mayor of Tehran Negotiate immediately with the esteemed head of the legislature in order to eliminate this great danger that is happening next to our ears with the follow-up and efforts of the Tehran Municipality so that this bitter incident does not happen.

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