Title: Iran Approves New Electronic Subsidy System, Set to Launch in November
Introduction
In a significant development for Iran’s social welfare framework, the government and parliament have finalized plans for the fifth phase of the Electronic Voucher (کالابرگ الکترونیک) scheme. This new system, described as the most substantial change to the subsidy system since the removal of preferential currency, is scheduled for a nationwide rollout in November.
A Hybrid Support Model
The key feature of the new phase is its hybrid model, which combines direct cash payments with in-kind commodity subsidies. Mohammad Bagher Ghalibaf, the Speaker of the Parliament, confirmed that while the upcoming October subsidy payment will follow the existing cash-only method, the new system will officially begin in November.
Under this model, eligible households will continue to receive a cash subsidy for general expenses. Simultaneously, a separate electronic voucher credit will be deposited into their accounts, designated specifically for purchasing essential goods at government-set prices. This ensures that the direct cash support is not eliminated but is instead supplemented with targeted commodity assistance.
Comprehensive Coverage and Goals
Authorities have emphasized that the program aims for broad coverage. “From [the month of] Aban, all targeted income deciles will be included in this plan,” stated Ghalibaf, adding that the government is seriously pursuing the inclusion of any groups currently not covered.
The primary objectives of the Electronic Voucher system are to control the prices of essential commodities and provide a stronger safety net for lower-income segments of society. By allowing voucher holders to purchase items such as rice, oil, dairy products, and chicken at stable, subsidized rates, the government aims to shield households from market price fluctuations.
Streamlined Digital Implementation
The new system represents a modernized return to a “smart coupon” mechanism, directly linked to the household head’s bank card for a more streamlined and digital process. Ahmad Meydari, the Minister of Cooperation, Labour, and Social Welfare, noted that new plans are being reviewed to simplify the credit deposit and purchasing process, making it more accessible for citizens.
Officials have clarified that the essential goods offered will be similar to previous voucher programs, but at lower, state-subsidized prices. The government will cover the difference between the market price and the official subsidized rate, ensuring that the final cost for the consumer remains unchanged.