Title: Vouchers vs. Direct Aid: Iranian Parliamentarian Calls for Overhaul of Subsidy System
Tehran – A member of Iran’s parliament has ignited a debate on the efficacy of the country’s current subsidy model, arguing that the existing system fails to provide tangible relief to families and requires fundamental change.
Ineffective Aid Mechanism
Hojjatoleslam Ahad Azadikhah, a member of the Islamic Revolution parliamentary faction, stated that the present method of allocating “Goods Allocation Credits” (commonly known as Kala-Barg) is not beneficial for the people. He proposed that instead of injecting credit into special cards, the government should either directly deliver a basket of essential goods to citizens or enforce stable prices on subsidized items.
“The current situation, where credit is placed on people’s cards but the price of basic goods increases daily, does not help with livelihood costs,” Azadikhah was quoted as saying. “People are forced to buy the same items at current market rates; therefore, either prices must be stabilized, or essential items must be provided to people directly.”
Parliamentary Focus on Social Justice
The lawmaker emphasized that a correctly implemented subsidy system is key to achieving social justice. He pointed to a specific parliamentary mandate that stipulated the prices for essential goods covered by the subsidy program should be fixed at levels from September 2021. “This resolution is not being observed, and goods are being sold to people at current rates,” he noted.
Call for Tiered Taxation on Goods
Further highlighting the need for a more equitable approach, Azadikhah also addressed the poultry market. He critiqued the blanket exemption of all income deciles from value-added tax on chicken purchases as “unfair.” He proposed a tiered system where the three most deprived deciles would be fully exempt, the middle deciles would pay according to their ability, and the wealthiest deciles would pay the full tax.
A System in Need of Reform
In his concluding remarks, the member of the Agriculture Commission issued a stark warning, asserting that without a structural reform of the Kala-Barg system, neither social justice nor an improvement in the people’s livelihood would be realized. His comments underscore an ongoing legislative effort to refine the mechanisms of state aid to ensure they effectively reach and support those in need.