Title: Parliament Approves Subsidy Reform: New Criteria Target High-Income Households
Subsidy Overhaul: Key Changes Announced
Iran’s Parliament has finalized a bill under the Seventh Development Plan to phase out cash subsidies for higher-income households (deciles 8–10), emphasizing stricter financial criteria. Deputy Chairman of the Planning and Budget Commission, Mehrdad Baouj Lahouti, confirmed that asset value, foreign travel frequency, and financial transactions will determine eligibility.
“The removal of subsidies for these deciles is mandatory under the law,” Lahouti stated, asserting that the targeted groups “do not require state assistance.” However, he warned of potential flaws in the asset verification system, citing cases where individuals may be wrongly disqualified due to shared or misreported finances.
Implementation Challenges and Criticisms
Lahouti highlighted concerns over the Welfare Ministry’s handling of appeals, criticizing its requirement for citizens to sign “commitment forms” instead of reviewing grievances. He urged Minister of Welfare Seyed Solat Mortazavi to streamline the appeals process to prevent undue hardship.
Starting September 2024, subsidies for approximately 25 million people in deciles 8–9 will cease, with prior notifications sent to households for dispute resolution via the government’s support portal.
New Eligibility Thresholds
The reform introduces strict benchmarks:
- Monthly income/transactions: Households exceeding defined limits (e.g., 100 million tomans for a family of five) face disqualification.
- Assets: Ownership of luxury cars (over 3 billion tomans) or properties (exceeding 35 billion tomans).
- Foreign travel: More than five annual trips or prolonged stays abroad.
Protecting Low-Income Families: Expert Recommendations
To prevent misclassification, officials advise:
- Separating subsidies for married children.
- Updating property/car ownership records.
- Closing unused bank accounts to avoid inflated transaction histories.
- Correcting passport travel logs if errors exist.
Lahouti stressed the need for precision: “The system must distinguish true need from bureaucratic errors.” The reforms aim to optimize welfare spending while safeguarding vulnerable groups.
Note: All measures align with Iran’s economic policies and legal frameworks.
