Title: Iran Announces Fourth Phase of Commodity Coupon Distribution – Key Details Inside
Cash Subsidies Disbursed for Low- to Middle-Income Households
Iran has rolled out the latest phase of its cash subsidy program, targeting households in income deciles 1 through 9. The payments, distributed in two stages, aim to provide financial relief amid economic pressures.
- Deciles 1-3: A direct cash subsidy of 400,000 tomans per person was deposited on August 25, 2024, available for withdrawal from midnight.
- Deciles 4-9: Eligible families will receive 300,000 tomans per person on August 31, 2024, maintaining the same rate since spring 2023.
Electronic Commodity Coupon Program Extended
The third phase of Iran’s electronic commodity coupon (kala-bargh) scheme remains active until August 31, 2024, allowing families to purchase essentials at designated stores. However, no official announcement has been made regarding a potential fourth phase, raising concerns among lower-income households reliant on this support.
Parliament Mandates Subsidy Reallocation
In a recent decision, the Islamic Consultative Assembly (Majlis) directed the government to redirect subsidies from deciles 8 and 9 toward the three lowest-income groups. While this shift aims to enhance equity, implementation details—including timelines and fund allocation—remain unclear.
Calls for Expanded Support & Economic Stimulus
Ali Babaei Karnami, head of the Majlis Social Commission, emphasized the need to expand the commodity coupon program to cover at least seven deciles, arguing that current income classifications may not accurately reflect financial hardship. He highlighted the program’s broader economic benefits:
- Boosting Local Economies: The coupon system stimulates production and supply chains, generating income and tax revenue.
- Food Security Priority: Ensuring access to 12-15 essential goods, including food and clothing, should remain a top focus.
Hybrid Payment Model Proposed
To prevent disruptions, Babaei Karnami urged a dual cash-and-credit payment system:
- If liquidity shortages occur, coupons should be issued as credit, backed by government guarantees for redemption within two months.
- “Budget constraints must not delay aid,” he stressed, calling for coordinated efforts between ministries and financial institutions.
Looking Ahead
With subsidies frozen and commodity coupons paused after August, households await further clarity on new support measures. Authorities face mounting pressure to balance fiscal responsibility with effective welfare policies, ensuring vulnerable populations are prioritized.
Stay tuned for official updates on Iran’s subsidy and commodity distribution policies.
