Iran Unveils Targeted Subsidy Overhaul to Bolster Low-Income Households
In a significant move to refine its social safety net, Iranian authorities have announced the launch of a new essential goods program set for November. This initiative, developed through close coordination between the government and parliament, aims to reallocate national resources more effectively by redirecting subsidies from higher-income earners to the most vulnerable segments of society.
A Shift Towards Precision Support
At the heart of the new policy is a recalibration of the subsidy system. Ahad Rostami, Head of the Iranian Information and Welfare Center, confirmed that based on the legally mandated budget, subsidies for the top three income deciles (8, 9, and 10) are being phased out. The funds recovered from this measure will be channeled into a new digital voucher, or “Goods-Coupon,” scheme designed explicitly to support low-income families.
“Since the start of the year, subsidies for approximately one to three million high-income individuals have been removed each month,” Rostami stated. “It is projected that by the end of the year, the total number of removals will reach around 18 million people.”
Data-Driven Implementation
The government emphasizes that the reclassification of households is not based on self-reporting but on a comprehensive, data-driven system. The Iranian Welfare Database, established in 2013, aggregates all registered household data, including assets, bank accounts, financial transactions, and social status. This information forms the basis for the precise decile classification and scoring.
For households who wish to contest their classification or the removal of their subsidy, a dedicated portal has been set up by the Ministry of Cooperatives, Labour, and Social Welfare.
Price Stability for Essential Goods
A key feature of the new program is the stabilization of prices for 13 essential commodity items. Despite the recent removal of the preferential currency rate from the import supply chain, which caused price increases, the government has committed to absorbing the extra cost.
Gholamreza Nouri Qezeljeh, the Minister of Agriculture, elaborated that items such as meat, poultry, rice, and eggs will be provided to beneficiaries at the previous stable rate. “Within the framework of the Goods-Coupon, this price increase will be paid by the government, and the people will receive the goods based on the former price,” the Minister explained. The primary goal is to “preserve the purchasing power of eligible classes and guarantee the provision of the necessary calories for households.”
High-Level Coordination for Swift Rollout
The implementation of this program has been a top priority, receiving direct attention from the highest levels of government. Mohammad-Bagher Ghalibaf, the Speaker of the Parliament, announced that the matter was pursued in a meeting of the heads of the three branches of government.
“All the necessary preparations have been made for the Goods-Coupon to be distributed in the form of goods starting in [the month of] Aban,” Ghalibaf stated, underscoring the government’s commitment to executing this legally mandated plan. He acknowledged minor technical and credit hurdles but expressed confidence that with inter-agency cooperation, the rollout would proceed as scheduled.
This overhaul represents a strategic effort to enhance economic justice and ensure that state support reaches those who need it most, marking a new chapter in Iran’s social welfare policy.