SCI: Iran’s tax-to-GDP ratio at 6.4% in March 2025

Tehran - BORNA - SCI data cited in a Sunday report showed that Iran’s tax-to-GDP ratio had reached 6.4% in the calendar year ending March 2025, up from 4% in the year to March 2021.

The report also referenced separate estimates from the Central Bank of Iran, which put the ratio at 8.3% for the past calendar year, compared to 7.7% a year earlier.

Earlier figures published by the Iranian National Tax Administration (INTA) in July similarly showed the tax-to-GDP ratio rising to 8.3%, from 5.7% in 2021.

According to SCI’s latest assessment, tax revenues covered 48% of the government's public budget needs in the year to late March, a significant increase from 29.2% four years earlier.

The data highlights progress in Iran’s economic diversification drive, launched after US sanctions in 2018 prompted the country to reduce its dependence on oil revenues.

Iran has reported strong growth in annual tax receipts, supported by improved taxation policies and wider adoption of online tax payment systems.

Tax revenues rose by more than 50% in the calendar year to late March, with the government collecting 12,290 trillion rials ($10.241 billion at current prices), up 51.7% from the previous year.

INTA reports show that direct taxes, including income tax, corporate duties, and taxes imposed on high-income individuals, account for more than 70% of its total receipts.

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