Iran Finalizes New Seven-Tier Electronic Subsidy Scheme to Stabilize Prices
Tehran – The Iranian government is finalizing a major overhaul of its subsidy system, with a new electronic voucher program set to focus support on seven primary income tiers, a senior minister announced.
In extensive meetings between the government and parliament, a consensus is emerging on the core objective of the “Electronic Coupon” plan: to decouple subsidies from production inputs and redirect them straight to consumers. This strategic shift is designed to maintain price stability and shield the economy from potential shocks.
Decisive Week Ahead
Ali Mehri, the Minister of Cooperation, Labour, and Social Welfare, confirmed that the final decision on the plan will be made in a meeting next week chaired by First Vice President Mohammad Reza Aref. This high-level approval underscores the plan’s importance within the administration’s economic agenda.
Minister Mehri detailed that the new scheme is expected to encompass the first seven deciles of society. This marks a significant expansion from a previous phase, where the top three income deciles were excluded from such support.
Prudent Implementation Timeline
While the plan is scheduled to be finalized by the Iranian month of Aban (late October/November), its immediate rollout is contingent on securing crucial partnerships. Minister Mehri emphasized that execution depends on reaching agreements with the private sector and formalizing contracts with suppliers to guarantee price stability.
“If this coordination is not achieved,” Mehri cautioned, “an immediate implementation would only lead to market instability.” This measured approach highlights the government’s priority for a smooth and non-disruptive transition.
A Call for Unified Effort
The minister concluded by outlining the critical factors for the program’s success, stating that the electronic coupon system requires full cooperation from the private sector, seamless coordination between executive bodies, and a unified decision between the government and parliament. This collaborative framework is seen as essential for delivering effective and efficient support to the Iranian people.