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Old October 12th, 2008, 07:43 PM   #1
sinasina
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Tehran's bazaar stays shut in VAT protest

It seems they are going down their British Sides ...

Tehran's bazaar stays shut in VAT protest


By Siavosh Ghazi AFP - 2 hours 44 mins ago

TEHRAN (AFP) - The Iranian capital's traditional bazaar stayed on strike on Sunday to back calls for the scrapping of VAT, even after President Mahmoud Ahmadinejad froze implementation of the tax for two months
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Stalls were shuttered in the capital's main bazaar, an AFP correspondent said, with policemen in uniform and plainclothes patrolling the area. The main gate remained closed and shoppers left empty-handed.

It is the first general strike at the bazaar since the revolution. The shutdown started in jewellery shops on Wednesday then spread to textile and carpet stalls, reaching its height on Sunday.

"Because of this tax (VAT), there is an increase of 10 to 15 percent in prices, so we want the government to annul the law," a shopkeeper standing by his closed business said.

The government last month introduced value added tax at a rate of three percent but traders say the effective rate will be higher because the levy will be imposed at every stage of the supply chain, from producer to consumer.

"By closing our shops we are losing money for a few days but if we do not succeed we will lose money for ever," another bazaari said.

"I hope the bazaaris win and not the government, since I would be purchasing things more expensively because of the new tax," said a dissatisfied consumer.

VAT came into force on September 22, but after press reports of strikes last week in the provincial cities of Isfahan, Mashhad and Tabriz, Ahmadinejad on October 9 ordered a two-month freeze.

Ahmadinejad in a letter to his Economy Minister Shamseddin Hosseini said the reason for the suspension was "to remove the obstacles and problems facing the correct execution of the law."

"We believe this law (VAT) should be implemented but there must be enough time for a briefing. We demand a year or at least six months of suspension," the head of Tehran's business and production assembly, Mohammad Pour Mazraeh, told the labour news agency ILNA.

Iran's Commerce Minister, Masoud Mir-Kazemi said it is up to parliament to scrap the VAT law.

"The guilds are looking for ways to annul this law, but the government cannot decide on its cancellation, it is the duty of the majlis (parliament) to decide on it," Mir-Kazemi was quoted as saying by Mehr news agency.

"In Iran the officials (government), the majlis and people interact with one another and this issue can be solved through talks," he added.

Rises in retail prices have accelerated since Ahmadinejad took office in 2005. In September, the cost of a basket of 45 staple food items was up 50 percent on a year earlier, press reports said.

Annual inflation topped 29 percent in the Iranian calendar month that ended on September 21.

"Inflation of around 30 percent has to manifest itself in one way or another. This strike is a sign of the dissatisfaction of the middle class with the economic policies of Ahmadinejad," economist Saeed Leylaz told AFP.

A senior Iranian businessman sees the bazaaris' move as a protest against the government's economic policies in general.

"This movement goes beyond union demands," said Mohammad Reza Behzadian, former head of Tehran's chamber of commerce and industry.

"This government has made its decisions without ever considering the opinion of economic experts and businessmen. It is a normal reaction to this attitude."

Iran's bazaaris play an important political as well as economic role. The merchants contributed to the collapse of the shah's regime during the 1979 Islamic revolution when they went on long strikes.


http://uk.news.yahoo.com/afp/2008101...bcb3ee416.html
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Old October 12th, 2008, 11:54 PM   #2
shayan
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yalla... why isn't any group jumping on this... -_- any smart resistance group would provide the bazaaris as long as they keep the shops closed and support demonstrations -_-
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Old October 13th, 2008, 01:32 PM   #3
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continue the strike please.
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Old October 13th, 2008, 01:59 PM   #4
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these bazaris are mafia like!
dont get me wrong iam the last one suppoertin ahmadinejad but that doesnt mean i support evry one who is against him!
iran is an importing economy and every thing was in favor of the importing bazaris!
even the tschadaor rules are from bazaris who import textil!
this bazaris are the backbone of backwardness and a backward society!
why shouldnt they pay taxes?
they have a monopol in the society and dont want to loose it!
let them pay....
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Old October 14th, 2008, 05:58 PM   #5
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What is wrong with VAT? Iranians pay next to no tax compared to the countries they compare themselves to.
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Old October 14th, 2008, 06:30 PM   #6
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I think there are two issues. Many of the countries that tax their population do so because that is the main income for them. Oil rich countries that have large amounts of income based on that should not tax as high, although taxing at certain levels should be fine. However, at the same time, if you are going to tax people, then the money should not be spent abraod for baseless projects, which we all know happens all the time.

That aside, from what I read, the VAT is different from some western countries. As I understand, the VAT in western countries is levied one time, usually at the retail level. This scheme apparantly adds a VAT each time a good changes hands. So if a good changes hand five times, there will be five VAT, which will increase the price very high and is an inefficient way to tax. Not sure if that is correct, but that's what I read.
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Old October 15th, 2008, 10:09 AM   #7
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There is nothing wrong with VAT to a certian level (for example 10%). The main problem in Iran is inflation. Currently the official rate is 23% and the unofficial rate is 30%.

If your product used to be 100 last year, the inflation is 25% and there is an added 10% VAT. The the retail price would be 100x25%x10%. So it would be 137.50, which would mean a real inflation of 37.5%!

Iran should stop creating money and stop its fixed rates of currency. Their main focus should be, brining inflation down to 5%. Then they can start adding VAT.
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Old October 17th, 2008, 01:58 PM   #8
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they have this inflation problem because of their autarky policy witch is because they can't freely import witch would bring inflation down and they can not import because of the political situation and wrong spending of oil money so how can you resolve this problem without regime change (witch would be the best solution)... build good relations with countries that export for example europe and the USA AND STOP supporting those Iranian farmers that arent sufficiently producing witch drives up the price of goods and stop importing from dubai but start direct imports...
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