Iran to increase VAT rate to 10% as oil price crashes

Iran is to increase its Value Added Tax rate from 7% to 10% from March 2015.

The plan had been to raise the VAT rate from 7% to 8% next year.  However, due to weakened finances, partially due to the sharp fall in oil prices, the consumption tax rise has been trebled.  The price of Brent crude has now fallen by 40% in 2014, leaving a major hole in the country's finances.  Iran had budgeted a break-even state budget at $130 per barrel, but the price is now approaching $60 per barrel.