Title: “New Capital Gains Tax Law Enacted to Curb Speculation in Key Markets”
Subheading: Landmark Legislation Aims to Stabilize Prices and Boost Productive Investments
After 14 years of deliberation between the Iranian Parliament and the Guardian Council, the Capital Gains Tax (CGT) Law has finally been approved and officially enacted. President Masoud Pezeshkian issued the directive on August 15, 2024, mandating its implementation across relevant executive bodies.
Targeting Non-Productive Speculation
The primary objective of this law is to redirect capital toward productive sectors while curbing speculative activities in four key markets: real estate, automobiles, gold, and foreign exchange/cryptocurrencies. By imposing taxes on short-term speculative gains, policymakers aim to stabilize price fluctuations driven by market manipulation.
Key Provisions of the Law
- Household Exemptions: Approximately 90% of households will be exempt from this tax.
- Annual Allowance: Each household head is permitted two property and two vehicle transactions per year without tax liability.
- Tax Rate: Set at a maximum of 1%, aligning with global standards.
Government Readiness for Implementation
Economy Minister Ali Madanizadeh confirmed that the Iranian National Tax Administration has already prepared the necessary infrastructure. The law will take full effect once the government finalizes its executive regulations.
Global Precedents and Domestic Impact
Similar capital gains taxes have been implemented in 120 countries, including Australia, where housing prices dropped by 2% in the first six months post-enactment. Iran’s move follows over a decade of economic debates on regulating speculative trading through fiscal measures.
Parliamentary and Guardian Council Approval
The law, previously contested over legal and religious concerns, was revised and ultimately cleared by the Guardian Council. Spokesman Hadi Tahan Nazif confirmed its compliance with Islamic principles and constitutional law.
Expert Perspectives
Mostafa Taheri, a member of the Housing Production Leap Commission, emphasized that the law is not revenue-focused and excludes the majority of citizens, ensuring minimal disruption to ordinary households.
This landmark legislation marks a significant step toward economic stability and productive investment, reinforcing Iran’s commitment to balanced market regulation.
