Iran denies spending tax money on supporting regional allies

The Iranian government says that domestic tax revenue is not being spent on supporting its regional military allies amid a deepening economic crisis plunging millions of Iranians into poverty.

Mohammad Hadi Sobhanian, head of Iranian National Tax Administration (INTA), told ILNA: “There is absolutely no discussion regarding the payment of taxes for overseas projects, and it is not the case that people pay taxes and the taxes are spent outside the country.”

He instead pointed to the government’s tax earmarking plan, which he said provides greater transparency in how revenue is allocated.

But leaked reports of Iran’s financial assistance to regional groups such as Hezbollah in Lebanon are fueling anger while at home, Iranians are suffering with mass unemployment and poverty.

On Tuesday, Supreme Leader Ali Khamenei met in Tehran with leaders of Palestinian Islamic Jihad, who were seeking further financial aid.

Meanwhile, Hezbollah has been expanding its network of interest-free loan funds, using Iranian support to provide financial relief to its followers.

Tehran recently allocated over $10,000 per family to Lebanese households affected by the most recent conflict with Israel, according to sources familiar with the matter. The funds were distributed among Shiite families aligned with Hezbollah.

Naim Qassem, Hezbollah’s newly appointed secretary-general, described the payments as a “gift from the Islamic Republic.”