Title: Parliament Directs Accelerated Subsidy Reforms to Prioritize Low-Income Families
In a significant move to refine the nation’s social support system, the Iranian Parliament has called for an accelerated implementation of the law to phase out cash subsidies for higher-income households. This directive aims to ensure that state resources are more effectively channeled to the most vulnerable segments of society.
Parliamentary Push for Swift Implementation
Recent parliamentary sessions have seen a strong consensus on the need to expedite the process outlined in the Budget Law for the current Iranian year (1404). Lawmakers have emphasized that the Ministry of Cooperation, Labour, and Social Welfare must act decisively to remove subsidies from the top three income deciles. This action is based on the principle that public funds should not be allocated to those who do not need them, thereby preventing waste and potential social imbalances.
A Gradual and Targeted Approach
To date, subsidies for 9.5 million individuals identified as higher-income have been discontinued. Projections indicate that up to 18 million people from the top income brackets could be phased out by the year’s end. While the new parliamentary directive could lead to a larger number of removals in the coming month, officials stress that the process remains methodical and data-driven.
Highlighting the government’s careful approach, a member of the parliament’s Social Commission stated, “The removal of subsidies must be conducted in a gradual and tiered manner. It is crucial to accurately assess the real income and assets of households to ensure fairness and prevent any social or economic disruption.” This reflects the government’s commitment to precision in its welfare policies.
The Six Key Criteria for Assessment
The government’s approach is based on a comprehensive, multi-factor assessment rather than self-declaration. The Iranian Welfare Platform analyzes a wide array of data to classify households. The six primary criteria indicating financial capacity, which could lead to subsidy removal, are:
- Total Household Income: The combined income of all family members.
- Monthly Purchase Transactions: The volume and value of banking transactions.
- Property Assets: Ownership of real estate.
- Luxury Vehicles: Possession of high-value automobiles.
- International Travel: Frequency of trips abroad.
- Residency Abroad: Length of stay outside the country.
Households exhibiting one or more of these indicators are identified for review, with those meeting multiple criteria being prioritized for removal.
Reallocating Resources for Greater Social Justice
The core objective of this policy, as mandated by the Budget Law, is to reallocate resources to strengthen the electronic commodity coupon scheme for low-income families. This strategic shift underscores the government’s focus on enhancing social justice and providing targeted support to those most in need, ensuring the nation’s welfare system operates with maximum efficiency and equity.