World
Iran’s coupons and taxes: Giving with one hand, taking with the other
Tehran, Iran – Iranian authorities are rolling out an electronic coupon scheme in recognition of the dire economic conditions under sanctions, but they are also hiking taxes across the board to cover budget deficits.
As the busy shopping and travel season of Nowruz, the Persian New Year, approaches, the government of centrist President Masoud Pezeshkian has revived the coupons scheme for at least a few more months, this time online.
The first use of coupons in Iran dates back to World War II when the country faced dire economic conditions and famine under British and Soviet occupation, which ended in 1946 after five years.
But coupons are mostly remembered for their widespread use in the aftermath of the 1979 revolution. Neighbouring Iraq invaded Iran with support from global and regional powers to counter the new theocratic Iranian establishment, and an eight-year war squeezed the population.
The coupons
Starting this week, low-income and middle-class Iranians are being given up to 5 million rials (just over $5) per person that can be used to buy limited quantities of food like red meat, chicken, eggs, milk, cooking oil, rice and sugar at government prices. About 60 million people are eligible to use the credit.
People can buy only 11 items from a list of select suppliers and shops across the country, and the credit purchases are separate from monthly government cash handouts that currently amount to about $4.85 per person.
The goal is to marginally alleviate short-term pressure on families who have been watching their purchasing power dwindle for years as a result of local mismanagement and all-encompassing Western sanctions.
The government of late President Ebrahim Raisi, which was in office from 2021 to 2024, implemented electronic coupons schemes twice, in 2023 and 2024, for short periods to ease pressure as well.
His immediate predecessor, President Hassan Rouhani, also publicly considered resorting to coupons in the aftermath of the 2018 withdrawal of the United States from Iran’s nuclear deal with world powers and imposed harsh sanctions on the country.
On the other hand, taxing everything
The Pezeshkian administration, which lost two key members to a political dispute with hardliners last week, has been trying to cut costs and increase revenues to grapple with a budget crunch.
The government’s approved budget for the Iranian calendar year 1404, which starts on March 21, shows considerably increased taxes and costs of services – in many cases much higher than Iran’s current 35 percent inflation rate.
Successive Iranian governments have been pushed to find new revenue sources, including through tax increases, to decrease the country’s dependency on oil revenues, which have been hit by the “maximum pressure” tactics by the US.
The Pezeshkian government said this month that it pays for 73 percent of its current expenses, excluding infrastructure expenditures, using tax revenues.
According to a February report by Iran’s Parliament Research Center, total government tax revenues are expected to go up 53 percent in the fiscal year 1404 compared with the previous year, the highest jump in a decade.
The budget foresees a 73 percent surge in total government earnings from corporate income tax compared with the year before and a 68 percent increase in income from personal income taxes.
The research arm of the parliament foresees a 36 percent rise compared with the previous year in wealth and property taxes.
Taxes on imports are to go up 85 percent as well with a significant part of the increase linked with government revenues from imports of new or used foreign vehicles after a years-long ban was lifted in 2022.
During the holy Muslim month of Ramadan, restaurants and hotels need to pay for permits to be able to operate while making sure no one publicly breaks their fast by eating, drinking or smoking, something that is considered a crime under Iran’s Islamic laws.
Taxes are increasing months after Iran raised the age of retirement for men by two years to 62 and increased the years of service required to receive full pensions for men to 35 from 30. That was aimed at reducing alarming pension fund deficits that have threatened financial sustainability and exerted more pressure on the government.
Amid another currency freefall and a lingering energy crisis, the embattled government has also been accused by hardline lawmakers of intentionally devaluing the national currency to make short-term gains.
Making services more expensive
Along with boosted taxes, the 1404 budget makes a long list of government services offered to Iranian and foreign nationals much more costly while ramping up financial penalties for offences.
Fees to issue national IDs and passports are up, and it will be more costly to register vehicles and motorcycles. Several fees linked with universities and technical and vocational exams are expected to rise.
Especially with Nowruz prompting millions of Iranians to travel this month, authorities are expecting much higher revenues from traffic fines because they will be hiked by up to 30 percent until early April.
Many major traffic offences had already seen their penalties tripled about eight months ago with several others, including dangerous or drunk driving, expected to be hiked another 50 percent next year.
Authorities plan on charging Iranians more for trying to leave the country too with departure levies up by about 30 percent. Repeated departures would incur more costs.
The state continues to impose financial penalties on and open criminal cases against people who are deemed to have violated mandatory hijab laws. Vehicles can be fined and impounded for weeks if they are repeatedly reported for hijab offences.
The Iranian government plans to make services offered to millions of migrants and refugees across the country more expensive as well, including costs of issuing or renewing travel and work permits.
Tehran Municipality announced last month that costs of services offered to foreign nationals will be 54 percent higher in the next Iranian year.
These price rises will mostly impact migrants and refugees from neighbouring Afghanistan, whose numbers in Iran swelled in the aftermath of the Taliban takeover of the country after the US withdrew in 2021.
Iranian authorities acknowledge at least six million Afghans live in Iran, a country of about 90 million people, but some estimates are several million higher.
World
Anthropic pledges $200 million to research AI’s economic impact as CEO suggests job loss solutions
Anthropic on Wednesday joined growing calls for the artificial intelligence industry to find ways to cushion people from the technology’s disruptions, announcing an initial $200 million investment to research AI’s impact on jobs and the economy.
Alongside new policy proposals from the maker of the Claude chatbot, Anthropic CEO and co-founder Dario Amodei published an essay on his personal website that expanded on his position that the government should promise economic support for those financially impacted by AI. The technology could produce much larger disruptions to the labor market than previous technological advancements, Amodei wrote, and those disruptions could last longer.
“The key challenge in such a world won’t be incentivizing growth, but finding a way for everyone to share in the benefits,” Amodei wrote.
The announcement comes on the heels of Anthropic rival OpenAI on Monday outlining goals that included ensuring gains from the technology are “widely shared.” OpenAI CEO Sam Altman recently met with Sen. Bernie Sanders to discuss a plan for the public to take an ownership stake in artificial intelligence companies like OpenAI, using their stock to create a public wealth fund that would spread the fortune generated by AI behemoths.
In the Oval Office on Wednesday, President Donald Trump told reporters that he will soon meet with executives from several leading AI companies to discuss “giving back” to the public.
“We’re talking about giving back something to the public, and if we do that, the public will become very rich,” Trump said. “I think they’ll do that, and I think it’ll make it very popular.”
In his essay, Amodei said he has warned of job displacement not because he is “trying to be a ‘prophet of doom’” but because he wants “both policymakers and the private sector to have the best chance to adapt and respond.” He proposed better data collection to track AI job displacement, pro-employment policy incentives to slow or reduce displacement and “mechanisms such as universal basic income” if job displacement more permanently drives down labor demand.
That universal basic income could be financed through taxes on “relevant companies” or by raising the capital gains tax, Amodei wrote.
Scant details were available Wednesday about the $200 million commitment from Anthropic, but the company said it will go to what it calls an Economic Futures Research Fund that will back research trials and “program evaluation” on public policies it deems promising. The company is also establishing a $150 million national fellowship program it says will help early-career professionals “extend the benefits of AI to communities across America.”
Anthropic and OpenAI each recently announced they were moving toward initial public offerings of shares, following Elon Musk’s rocket company SpaceX, which is pitching itself as an AI-focused space company as it prepares to go public.
The economic policy framework Anthropic proposed Wednesday set recommendations for how the U.S. government could respond to three levels of economic disruption caused by AI: one in which the national unemployment rate reaches 5%, 10% and an unspecified, “unprecedented” level. The latest unemployment rate, reported last week, was 4.3%.
In the “unprecedented” scenario, the company wrote that more permanent support will be necessary, and it listed several ways to generate and share revenue broadly, including basic income, sovereign wealth models and equity-sharing mechanisms. This would be “novel economic territory,” the company wrote.
The company’s proposals also outlined several suggestions for mitigating safety and security risks. Anthropic is known for its emphasis on safety and building reliable, “steerable” AI systems, with Amodei and its co-founders splitting off from OpenAI to form the new company in 2021.
The proposals add that the government should be able to “block or deter” the rollout of AI models that “pose a significant risk of catastrophic harms.”
Amodei wrote that AI regulations should match the rigor of Federal Aviation Administration regulations in that AI models would be required to go through technical testing and auditing like airplanes. They wouldn’t be released if they didn’t meet high safety standards.
Last week, Trump signed an executive order on AI oversight that established a framework for the government to vet the national security risks of the most advanced AI systems for up to a month before their public release.
Amodei added existing regulations for aircraft, automobiles and drugs should serve as models for regulating AI. They are all “powerful technologies essential to the modern economy,” he wrote, “but capable of killing large numbers of people if designed or operated poorly.”
World
UK spy powers draw US scrutiny over alleged Apple encryption backdoor demand
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U.K. surveillance laws drew scrutiny from House Judiciary Committee Chairman Jim Jordan, R-Ohio June 5 amid warnings they could expose communications of officials and American citizens, according to reports.
The concern centered on the U.K.’s use of secret Technical Capability Notices under the Investigatory Powers Act, which critics say could make U.S. companies weaken encryption or create “backdoors” weaken encryption or create “backdoors” while preventing firms from disclosing requests without U.K. government approval.
Critics have argued this could undermine privacy, create vulnerabilities and limit congressional oversight with one former intelligence official warning of a “standing invitation to Beijing.”
“We have already seen how this ends,” former Department of Defense official Andrew Badger told Fox News Digital.
JD VANCE ‘DIRECTLY’ CONVINCED UK TO DROP APPLE BACKDOOR DATA DEMAND, PROTECTING AMERICANS’ RIGHTS: US OFFICIAL
Rep. Jim Jordan said Republicans are “the party of common sense,” and Democrats are “the party that takes these crazy positions.” (Kevin Dietsch/Getty Images)
“There are legitimate privacy concerns here, and those have been well aired. The less examined issue is national security,” Badger said.
“A backdoor compelled by one ally becomes a standing invitation to Beijing, Moscow and Tehran so once one government can quietly compel access, others will demand the same, and a one-off concession hardens into a permanent vulnerability,” he warned.
According to the Telegraph, a June 5 letter sent by Jordan to U.K. Home Secretary Shabana Mahmood, showed the Trump ally had called for a review.
The report said Mahmood’s decision had been to deny a U.S. company permission to speak with Congress about an alleged encryption backdoor notice.
Jordan was also said to have warned that a lack of bilateral coordination raised concerns about the “trust and effective partnership between our two countries.”
“Five Eyes works because every partner trusts the others not to weaken the systems they all depend on,” Badger, co-author of “The Great Heist: China’s Epic Campaign to Steal America’s Secrets,” said.
“If Washington also concludes that U.K. surveillance powers could inadvertently expose Americans and American officials to espionage, it puts real strain on the relationship and makes future cooperation on intelligence and cyber harder to sustain.”
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The Thames House headquarters of MI5 in London on Nov. 18, 2025. Britain’s domestic security service has warned of growing state-backed threats, including more than 20 Iran-backed plots uncovered in the UK, as lawmakers consider new legislation targeting foreign state-linked groups. (Betty Laura Zapata/Bloomberg via Getty Images)
On the encryption issue, Badger noted that mainstream encrypted platforms now function as “de facto infrastructure for sensitive communication well beyond the consumer market.”
“Any access point built into them becomes a permanent target. It is not a private key the requesting government gets to keep to itself,” he said.
U.S. and British cyber officials have also repeatedly warned that an axis of hostile states — including Russia, China and Iran — poses threats to Western security and infrastructure.
As previously reported by Fox News Digital, cyberespionage by groups such as Salt Typhoon, linked to China, has carried out operations targeting sensitive communications.
“China is actively running one of the largest state-backed cyberespionage operations ever uncovered. The Salt Typhoon campaign has targeted hundreds of organizations across roughly 80 countries and, through those intrusions, gained access to sensitive communications and networks used by senior Western officials,” Badger warned.
“Chinese state hackers didn’t defeat encryption. They walked straight through the lawful-intercept systems telecom providers had built, reaching the communications of senior officials and even information about surveillance targets.”
CHINESE BIOWEAPON SMUGGLING CASE SHOWS US ‘TRAINS OUR ENEMIES,’ ‘LEARNED NOTHING’ FROM COVID: SECURITY EXPERT
The flag of China is flown behind a pair of surveillance cameras outside the Central Government Offices. (Roy Liu/Bloomberg via Getty Images)
Reports also surfaced that U.K. Foreign Secretary Yvette Cooper used a burner phone during a recent trip to Beijing and raising further concerns about state-sponsored espionage.
Badger noted that the episode reflects a broader pattern of Chinese targeting of British democratic institutions, including the “hacking of senior Downing Street officials’ phones and an Electoral Commission breach that exposed the data of roughly 40 million voters,” he said.
“The telling thing is that no one issues burner phones for a trip to Sweden or Germany,” he said.
“The precaution is itself an admission of the threat environment. The working assumption — correctly — is that anything digital taken into China should be treated as potentially compromised.”
The systemic vulnerability also highlights a fundamental contradiction in Western diplomatic strategy, according to Badger.
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“This case perfectly underscores the contradiction at the heart of the U.K. Labour government’s China policy: chasing positive economic relations and expanded trade with Beijing on one hand, while being forced to take elaborate precautions against a state whose core interests remain fundamentally at odds with its own on the other,” Badger said.
“You can’t simultaneously treat China as a trusted economic partner and a hostile intelligence threat. It’s a fundamental contradiction. The need to use burner phones symbolically underscore this.”
World
Trade and defence top of agenda at EU-South Korea summit
European Commission President Ursula von der Leyen, European Council President Antonio Costa and with South Korean President Lee Jae-myung celebrated the signing of new a digital trade agreement at a ceremony in Brussels on Wednesday.
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The event marked the EU and South Korea’s 11th summit, with everything from security and defence to trade on the agenda.
“Korea is one of Europe’s closest partners in the Indo-Pacific region and on the global stage,” von der Leyen said. “In today’s uncertain world, stable and trusted partnerships like ours are more precious than ever.”
The trio released a joint statement extolling the value of the talks and committing the two sides to a firm and friendly relationship.
“We reaffirm our shared commitment to effective multilateralism, and to a stable and predictable rules-based free and fair economic order,” the statement reads.
The semiconductor factor
Both sides have an interest in diversifying their trade relationships at a time of growing tensions with both China and the US, and the EU-South Korea digital trade agreement comes more than a decade after a landmark free trade deal.
Since 2015, trade between the EU and South Korea has doubled, with goods trade reaching approximately €124.25 billion in 2025, according to figures from the European Commission.
“The European Union-Korea Free Trade Agreement remains one of the European Union’s most successful trade agreements since its entry into enforcement in 2011,” European Council António Costa said on Wednesday.
South Korea is becoming an increasingly important investor in Europe, particularly in strategic sectors such as batteries, electric vehicles and semiconductors.
For the EU, a key objective is to secure semiconductor supply chains while attracting further investment from Korean companies into Europe.
“Korea has a global leadership position in semiconductors,” an EU official said. “This is clearly an area with significant potential for cooperation that would benefit both sides.”
The digital trade agreement concluded on Wednesday is expected to complement the broader trade partnership by reducing “unnecessary barriers to digital trade” and providing greater “legal certainty” for businesses operating across the two markets, according to another EU official. It will facilitate cross-border data flows while prohibiting the mandatory transfer of source code.
The deal is also designed to establish robust online consumer protection rules, though both partners intend to maintain their respective levels of protection for personal data and privacy.
Economic security was also high on the summit agenda, with the two sides agreeing to establish a high-level dialogue on supply chain resilience.
Supply chains came under pressure last year following China’s restrictions on exports of strategic materials, including rare earths – essential for green technologies and the defence sector – as well as products linked to the chip industry, which are critical to automotive manufacturing.
Security and defence
One thing that did not get over the line was a security of information agreement, which had been touted by EU officials prior to the summit as a means of strengthening the flow of classified information between Brussels and Seoul.
“I hope that the security of information agreement will be adopted soon, so that Korea and the EU can share confidential information safely, which will allow the two sides to engage in industrial and research cooperation actively through information exchange exchange,” President Lee said on Wednesday.
The agreement would build on the Security and Defence Partnership agreement that South Korea and the EU signed in 2024. That deal was designed to facilitate cooperation in areas spanning maritime security, countering hybrid threats, fighting foreign information manipulation and interference, and more besides.
In the run-up to this week’s talks, a senior EU official said a key topic of the discussions will be nuclear non-proliferation, as North Korea continues to hold a small but concerning stockpile of nuclear-armed warheads.
North Korea (the DPRK) and Russia were considered “big questions” at the summit, the source said, with Brussels ready to share information on its support for Ukraine with Seoul.
The joint statement from the summit reiterates this, with words of condemnation directed at North Korea and other nations who enable Russia to sustain its war of aggression against Ukraine.
“We urge Russia and the DPRK to immediately cease all such activities and abide by the UN Charter and all relevant United Nations Security Council resolutions,” the statement reads.
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