Bandar Abbas Merchants Protest Increased Value-Added Tax

Traders in Bandar Abbas gathered in front of the General Department of Taxation of Hormozgan Province to protest against 10 percent hikes in the value-added tax (VAT) rate amid the country's economic disaster.

According to one merchant interviewed by Sobh-e Sahel, the increase compounds the already significant strain on the country's production and industrial sectors due to ongoing inflation and international sanctions.

The assembled crowd chanted slogans like "We object" and demanded the revocation of the new tax directives.

The protest comes on the heels of similar actions earlier in the week when gold retailers in cities such as Tehran, and Tabriz either shut down or scaled back operations to voice their discontent with the government’s tax policies and legislative attempts to impose higher taxes.

A local retailer told Sobh-e Sahel that in addition to a base 20 percent tax on goods, merchants are compelled to add another 10 percent in VAT, a policy that significantly diminishes the purchasing power of consumers.

The broader economic context in Iran remains grim, with numerous reports over the years highlighting a sharp increase in poverty and the deteriorating financial conditions faced by its citizens.

As the government prepares to implement new tax regulations across several sectors such as gold, currency, housing, and automobiles, discontent continues to rise.

On April 22, the Etemad newspaper criticized the newly imposed taxes as exacerbating the issues, suggesting that such fiscal policies could deepen poverty and expand the impoverished demographic within the country.