The Iranian government says that domestic tax revenue is not being spent on supporting its regional military allies amid a deepening economic crisis plunging millions of Iranians into poverty.
Mohammad Hadi Sobhanian, head of Iranian National Tax Administration (INTA), told ILNA: “There is absolutely no discussion regarding the payment of taxes for overseas projects, and it is not the case that people pay taxes and the taxes are spent outside the country.”
He instead pointed to the government’s tax earmarking plan, which he said provides greater transparency in how revenue is allocated.
But leaked reports of Iran’s financial assistance to regional groups such as Hezbollah in Lebanon are fueling anger while at home, Iranians are suffering with mass unemployment and poverty.
On Tuesday, Supreme Leader Ali Khamenei met in Tehran with leaders of Palestinian Islamic Jihad, who were seeking further financial aid.
Meanwhile, Hezbollah has been expanding its network of interest-free loan funds, using Iranian support to provide financial relief to its followers.
Tehran recently allocated over $10,000 per family to Lebanese households affected by the most recent conflict with Israel, according to sources familiar with the matter. The funds were distributed among Shiite families aligned with Hezbollah.
Naim Qassem, Hezbollah’s newly appointed secretary-general, described the payments as a “gift from the Islamic Republic.”
The surge, marked by a monthly inflation exceeding 4% for the first time in the past year, has exacerbated the widespread public discontent, especially as food prices skyrocket. Hundreds of Iranian have sent messages to Iran International complaining about soaring prices.
Official data reveals that food costs are the primary driver of inflation, with rural areas experiencing a higher rate (36%) than urban centers (35.2%). Low-income households are bearing the brunt of this economic strain, particularly in provinces like Semnan, West Azarbaijan, and Hormozgan.
"The point-to-point inflation rate, indicating how much household expenses have changed compared to last year, reached 35.3% in the Persian calendar month of Bahman (ended on February 18)," said the Statistical Center. "This marks the highest inflation rate in 12 months."
Vegetables and legumes saw a staggering 16.9% monthly inflation, while fruits and nuts rose by 8.7%. Conversely, education saw the lowest monthly inflation, below 1%.
Annual inflation has risen by around 40 percent, each year in the past five years, and the rial has lost 95% of its value since 2018 when Donald Trump withdrew from the 2015 nuclear deal and re-imposed draconian sanctions on the country.
The massive depreciation of the rial and high inflation have drastically increased the cost of living, including expenses for food, housing, and healthcare and driven over 30 percent of the population below the poverty line.
Citizens engaging with Iran International have corroborated these findings, sending videos depicting a sharp rise in essential goods prices.
