With the presentation of Iran’s 2024 budget proposal and the announcement of a 50% increase in taxes, some regime experts have questioned why we should cover the budget deficit from the pockets of the people and what the purpose of such financial pressure is. Others have written, “With heavy taxes… it is unclear how long society can tolerate the imposed pressures.”
Confidential Majlis (parliament) documents published by the “GhiamSarnegouni” dissident group shed light on the hidden agenda behind the financial pressure, reduction of budget allocations for social services and healthcare, etc. These documents reveal that the increase in budget allocations is directed towards strengthening the repressive organs and bolstering the “defense infrastructure” of the Islamic Revolutionary Guard Corps (IRGC).
One of the published documents refers to a highly confidential letter from Brigadier General Mohammad Bagheri, the Chief of Staff of the Armed Forces, to Majlis Speaker Mohammad Bagher Ghalibaf and reads, “Thank you for the approval of 3 billion euros for the defense infrastructure in the Majlis and the request for an additional 500 million euros for the production of vessels, missiles, radars, and drones.”
In another document, with reference to the necessity of enhancing the morale and well-being and “sustaining” the repressive forces, it states: “Request for additional assistance for the salaries of Armed Forces personnel, covering the budget deficits for maintenance and welfare facilities, supporting the budgets of intelligence and Basij organizations, overtime pay for law enforcement forces, residential buildings for the Ministry of Defense, supporting the budgets of the army, strengthening the Quds Force and the aerospace division of the IRGC, and enhancing the protection of information in universities and ideological institutions.”
In addition to the official budget of the IRGC, there are several provisions and monthly incentives for the repressive forces.
After the presentation of the budget proposal, the state-run Donya-ye Eghtesad newspaper, on November 22, 2023, wrote, “In accordance with Clause ‘A’ of Article 102 of the Seventh Development Plan Law, in order to strengthen the defense infrastructure of the armed forces, the government is obligated to allocate the equivalent of 1.34 trillion rials monthly to the General Staff of the Armed Forces.”
Furthermore, according to published documents, in a February 21, 2023, highly confidential and urgent letter to Ghalibaf, Brigadier General Majid Khademi, the Chief of the Islamic Revolutionary Guard Corps’ Intelligence Protection Organization requested a 28-trillion-rial budget increase for the IRGC’s information protection, solely for the year 2024. In response to this request, Ghalibaf wrote, “Considering the Supreme Commander’s orders, the IRGC should be given special attention in the tables.”
It appears that the regime has resorted to an unprecedented increase in taxes on the people and printing banknotes without backing to obtain these astronomical figures. However, regime experts warn about the dangerous consequences of such actions in terms of social impact and the regime’s precarious position.
On February 1, the state-run Etemad newspaper quoted economist Hossein Raghefar as saying, “The main target of taxes is the people… In the recent tax bill submitted by the government to the Majlis, it is mentioned on the front page that the institutions under Ali Khamenei supervision are exempt from this law! A significant portion of the country’s economy belongs to these foundations, institutions, and enterprises, and they must pay taxes on their economic activities.”
This regime expert then refers to the “strong social reaction” against tax pressures and warns, “This issue will stir up society, and public opinion will point fingers at the government. It is natural that this matter will lead to increased dissatisfaction in society, and this dissatisfaction will manifest itself in various forms.”
On February 18, the state-run Didar news website quoted Ali Jannati, the former Minister of Guidance of the regime, as saying, “With the budget that the Majlis approves and the severe budget deficit it has, along with the predicted terrifying inflation that will prevail next year, considering that most the government’s income resources rely on taxes… It is crystal clear that with the same approach we have taken so far, we are on the edge of an abyss.”