Title: Iran Refines Subsidy Program to Prioritize Low-Income Households
In a move to enhance economic efficiency and social justice, Iran’s Minister of Cooperatives, Labour, and Social Welfare has announced a significant update to the nation’s long-standing subsidy system. The policy refinement, which is fully in line with the country’s budget law, aims to reallocate resources more equitably by phasing out cash subsidies for the highest-income segments of society.
Key Criteria for Subsidy Adjustment
The government has established a clear, multi-faceted framework to identify high-income households that will no longer receive subsidies. The primary criteria include:
- Households with members who have taken more than five international trips in a single year.
- Ownership of real estate properties with a combined value exceeding 35 billion tomans.
- Ownership of one or more vehicles with a total value surpassing 30 billion tomans.
- A monthly income per capita—after deducting housing rental costs—of over 10 million tomans.
Detailed Financial Benchmarks
To ensure transparency and precision, the government has also set specific monthly income and banking transaction thresholds based on household size. Households exceeding these limits will be excluded from the subsidy program.
Monthly Income Cap:
| Household Size | Maximum Monthly Income (Toman) |
|—————-|———————————-|
| 1 Person | 30 Million |
| 2 People | 37 Million |
| 3 People | 45 Million |
| 4 People | 52 Million |
| 5 People | 60 Million |
Monthly Banking Transaction Cap:
| Household Size | Maximum Monthly Transactions (Toman) |
|—————-|—————————————|
| 1 Person | 50 Million |
| 2 People | 60 Million |
| 3 People | 75 Million |
| 4 People | 87 Million |
| 5 People | 100 Million |
Policy Objectives and Analysis
This recalibration of the subsidy program is a strategic measure to streamline national financial resources and prevent waste. By redirecting support, the policy is designed to strengthen the social safety net for vulnerable and low-income families, reflecting the government’s commitment to equitable wealth distribution and economic justice.
Officials acknowledge that the implementation of such a detailed framework may present logistical challenges, including the potential for misclassification. However, these measures are deemed essential for the long-term goal of reducing economic disparity and fostering sustainable development. This step is viewed as a progressive move towards a more efficient and fair allocation of state resources.