The final text of the 7th Development Plan Telefin Commission

The final text of the 7th Development Plan Telefin Commission

Reform the tax system

Chapter 4- Reforming the tax system

Article 26- In the implementation of the fourth paragraph of the general policies of the program and in order to achieve the following quantitative goals, actions will be taken in accordance with the provisions of this chapter.

Article 27- In order to increase the share of taxes in the general budget of the country, the following measures are taken:

A- It is prohibited to impose any discount, preference, forgiveness, rate reduction, exemption and inclusion of zero rate and grant new tax credits in the program years.

B- The amount of tax revenue lost by the government from the total exemption, zero rate, credit, reduction of tax rates and tax amnesties regarding the income tax of any natural person cannot be more than five billion (5,000,000,000) rials per year.

C- From the beginning of the first tax period, the subject of Article (1) of the Value Added Tax Law (approved in 1400), in the second year, the rate of the subject of Article (7) of the aforementioned law, as a tax on the government’s share, is one percent per year up to the limit of the Thirteenth Plan. The percentage (13%) is added. At the same time as the value added tax rate increases, the income tax rate of legal entities is reduced by one percentage point (1%) every year.

Note- The government is obliged to submit the tax bill on total household income to the Islamic Council six months after the notification of the program.

T- The Ministry of Economic Affairs and Finance is obliged, for the sake of transparency of tax protections, to annually prepare a list of all discounts, tax credits, zero rates, exemptions or remissions, and tax and customs preferences and the amount of lost government revenue due to the aforementioned cases and citations. Calculate the relevant law separately. The organization is also obliged to publish it in the form of annual budget annex.

D- The Ministry of Economic Affairs and Finance is obliged, with the cooperation of the organization, within six months after the notification of the program, the necessary legal bills to reduce discounts, tax credit, zero rate, exemption or forgiveness and tax and customs preferences are carried out in a way that the real value Regarding the total of the mentioned cases, it should be reduced by ten percent (10%) annually and at the end of the program, it should be reduced by fifty percent (50%) compared to the first year of the program.

C- The central bank, all banks, credit institutions, Qarz Al-Hasna funds, municipalities, Rahor Faraja Police, the country’s documents and real estate registration organization are obliged to provide the information requested by the country’s tax affairs organization online. In case of violation of this ruling, the said authorities will be subject to the exclusion of Article (202) of the Direct Taxes Law, in addition to joint responsibility with the taxpayer in paying taxes.

C- In the case of provinces whose annual tax revenue has increased by more than fifty percent (50%) compared to the previous year, ten percent (10%) of the taxes collected in excess of the fifty percent (50%) growth, are at the disposal of the same provinces. is placed

H- Exemption from Clause (b) of Article (159) of the Fifth Development Plan Law is only valid for the production and mining activities of production and mining units whose exploitation license or mining contract has been issued during the implementation period of the mentioned law.

K- During the years of the program, the Riyal figures subject to Articles 44, 46 and 47 of the Direct Taxes Law and their notes are adjusted and applied based on the consumer price index.

This post is written by shadmanamini