Reports from Tehran indicate that the strikes by bazaari merchants that started last week have spread significantly, shutting down many parts of Tehran bazaar. The merchants were protesting a dramatic 70% increase in their income tax. The strikes started in the Fabrics Bazaar on Tuesday of last week and soon spread to Gold Bazaar and others.
Meanwhile the government has unexpectedly declared a two-day holiday in the capital without giving any reasons for its action. Observers speculate the reason for the unscheduled holiday was an attempt to downplay the effects of a massive strike in Tehran Bazaar.
UPDATE: Tehran Bazaar remained closed on Wednesday, a day after the government-imposed holiday in the city ended. Reports from Tehran indicate that the shops between Sabzemeydan and the bazaar itself are all closed. The government had increased the tax on Bazaar merchants by 70%. Later under pressure from the bazaaris, the minister of commerce announced that taxes would only increase by 15% over last year’s. Today’s continued strikes indicate that the lower figure has not ended the controversy.
- It's 70% increase related to what it was last year and not 70% tax rate.
- Government gave a reason, however correct or not: extreme hot weather (I personally fall sick due to hot weather).
- Finally they settled on 15% increase.
Tax culture is needed for Iran if Iran wishes to progress.
I hope the Govt. stays hard in Iran
relying solely on Oil for Govt. Income is wrong.
apart from that , Bazar can thank the US and its sanctions for the necessity of this taxation
Thanks much for the clarification.
The merchants(Bazaris) in Iran, are like the Unions of the Thacher era in the UK.
As Thatcher smashed the Unions in the UK, Iran has to castrate the Bazaris in Iran.
just an opinion..
15% tax increase decided
,that coresponding to inflation rate
Easier said than done! Two reasons: the bazarris still play an important economic function in the economy, smashing them would make the economic and business situation worse. Then there is a political baggage: the bazarris were the backbone of Khomeini's movement in late 70's that led to the establishment of the Islamic Republic, and the clergy traditionally, and in recent years, has had a very close relationship with the bazaar.
First rule of a revolution, eat your children.
Bazaris have to subordinate themselves for the greater cause, not very difficult to make and create an atmosphere of pressure on them.
My opinion is, the whole thing would not be that much of a blunder, however necessary if the new "Yarane" law ,ought to have a chance.
just a humble opinion.
is not the head of the "Baazari Clan" the Akbar Shah himself? Iran is not a country as shopkeepers like the UK, it must move to be like China in terms of technology and industrialisation!
The so called relentless import of certain alpha goods prior to the sanctions and strikes were probably to bunker "Stamina".
Sowith enduring such strikes could be easier for at least 6 months before having to move against the Bazaris.
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