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
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World
State Dept authorizes non-essential US Embassy personnel in Jerusalem to depart ahead of possible Iran strikes
Deadline looms for Iran-US nuclear deal
U.S.-Iran nuclear talks intensify in Switzerland as President Trump’s deadline approaches. Vice President JD Vance states there’s ‘no chance’ of endless war in the Middle East.
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The State Department is allowing non-essential personnel working at the U.S. Embassy in Jerusalem to leave Israel ahead of possible strikes on Iran. The embassy announced the decision early Friday morning and said that “in response to security incidents and without advance notice” it could place further restrictions on where U.S. government employees can travel within Israel.
The decision came after meetings and phone calls through the night Thursday into Friday, according to The New York Times, which reviewed a copy of an email that U.S. Ambassador to Israel Mike Huckabee sent to embassy workers.
The Times reported that the ambassador said in his email that the move was a result of “an abundance of caution” and that those wishing to leave “should do so TODAY.” He reportedly urged them to look for flights out of Ben Gurion Airport to any destination, cautioning that the embassy’s move “will likely result in high demand for airline seats today.”
The U.S. has authorized non-essential embassy personnel to leave Israel amid escalating tensions with Iran. (Al Drago/Bloomberg via Getty Images; Iranian Leader Press Office/Anadolu via Getty Images)
In the email, Huckabee also said that there was “no need to panic,” but he underscored that those looking to leave should “make plans to depart sooner rather than later,” the Times reported.
“Focus on getting a seat to anyplace from which you can then continue travel to D.C., but the first priority will be getting expeditiously out of country,” Huckabee said in the email, according to the Times.
Former Arkansas Gov. Mike Huckabee, U.S. President Donald Trump’s nominee to be ambassador to Israel, arrives to testify during his Senate Foreign Relations Committee confirmation hearing at the Dirksen Senate Office Building on Mar. 25, 2025, in Washington, D.C. (Kevin Dietsch/Getty Images)
TRUMP MEETS NETANYAHU, SAYS HE WANTS IRAN DEAL BUT REMINDS TEHRAN OF ‘MIDNIGHT HAMMER’ OPERATION
The embassy reiterated the State Department’s advisory for U.S. citizens to reconsider traveling to Israel and the West Bank “due to terrorism and civil unrest.” Additionally, the department advised that U.S. citizens not travel to Gaza because of terrorism and armed conflict, as well as northern Israel, particularly within 2.5 miles of the Lebanese and Syrian borders because of “continued military presence and activity.”
It also recommended that U.S. citizens not travel within 1.5 miles of the Egyptian border, with the exception of the Taba crossing, which remains open.
“Terrorist groups, lone-actor terrorists and other violent extremists continue plotting possible attacks in Israel, the West Bank, and Gaza. Terrorists and violent extremists may attack with little or no warning, targeting tourist locations, transportation hubs, markets/shopping malls, and local government facilities,” the embassy said in its warning. “The security environment is complex and can change quickly, and violence can occur in Israel, the West Bank, and Gaza without warning.”
Israeli and U.S. flags are placed on the road leading to the U.S. consulate in the Jewish neighborhood of Arnona, on the East-West Jerusalem line in Jerusalem, May 9, 2018. (Corinna Kern/picture alliance via Getty Images)
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While the embassy did not specifically mention Iran in its warning, it referenced “increased regional tensions” that could “cause airlines to cancel and/or curtail flights into and out of Israel.”
Fox News Digital reached out to the State Department and the White House for comment on this matter.
World
Has India’s influence in Afghanistan grown under the Taliban?
Pakistan has accused Afghanistan’s Taliban of serving as a “proxy” for India, amid escalating hostilities between Islamabad and Kabul.
Just hours after Pakistan bombed locations in Kabul early on Friday, Pakistan’s Minister of Defence Khawaja Asif wrote on X that after NATO forces withdrew from Afghanistan in July 2021, “it was expected that peace would prevail in Afghanistan and that the Taliban would focus on the interests of the Afghan people and regional stability”.
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“However, the Taliban turned Afghanistan into a colony of India,” he wrote and accused the Taliban of “exporting terrorism”.
“Pakistan made every effort, both directly and through friendly countries, to keep the situation stable. It carried out extensive diplomacy. However, the Taliban became a proxy of India,” he alleged as he declared an “open war” with Afghanistan.
This is not the first time that Asif has brought India into tensions with Afghanistan.
Last October, he alleged: “India wants to engage in a low-intensity war with Pakistan. To achieve this, they are using Kabul.”
So far, Asif has presented no evidence to back his claims and the Taliban has rejected accusations that it is being influenced by India.
But India has condemned the Pakistani military’s recent actions in Afghanistan, adding to Islamabad’s growing discernment that its nuclear rival and the Taliban are edging closer.
Earlier this week, after the Pakistani military carried out air raids inside Afghanistan on Sunday, India’s Ministry of External Affairs said in a statement that New Delhi “strongly condemns Pakistan’s airstrikes on Afghan territory that have resulted in civilian casualties, including women and children, during the holy month of Ramadan”.
After Friday morning’s flare-up between Pakistan and Afghanistan, India’s foreign ministry spokesperson Randhir Jaiswal again said New Delhi “strongly” condemned Pakistan’s air strikes and also noted that they took place on a Friday during the holy month of Ramadan.
“It is another attempt by Pakistan to externalise its internal failures,” Jaiswal said in a statement on X.
Has India’s influence in Afghanistan grown under the Taliban and what is India’s endgame with Afghanistan?
Here’s what we know:
How have relations between India and the Taliban evolved?
When the Taliban first rose to power in Afghanistan in 1996, India adopted a hostile policy towards the group and did not recognise its assumption of power. India also shunned all diplomatic relations with the Taliban.
At the time, New Delhi viewed the Taliban as a proxy for Pakistan’s intelligence agencies. Pakistan, together with Saudi Arabia and the United Arab Emirates, were the only three countries to have also recognised the Taliban administration at that point.
Then, in 2001, India supported the US-led invasion of Afghanistan, which toppled the Taliban administration. India then reopened its embassy in Kabul and embraced the new government led by Hamid Karzai. The Taliban, in response, attacked Indian embassies and consulates in Afghanistan. In 2008, at least 58 people were killed when the Taliban bombed India’s embassy in Kabul.
In 2021, after the Taliban returned to power, India closed its embassy in Afghanistan once again and also did not officially recognise the Taliban as the government of the country.
But a year later, as relations between Pakistan and the Taliban deteriorated over armed groups which Pakistan accuses Afghanistan of harbouring, India began engaging with the Taliban.
In 2022, India sent a team of “technical experts” to run its mission in Kabul and officially reopened its embassy in the Afghan capital last October. New Delhi also allowed the Taliban to operate Afghanistan consulates in the Indian cities of Mumbai and Hyderabad.
Over the past two years, officials from New Delhi and Afghanistan have also held meetings abroad, in Kabul and in New Delhi.
In January last year, the Taliban administration’s Foreign Minister Amir Khan Muttaqi met India’s Foreign Secretary Vikram Misri in Dubai, the United Arab Emirates.
Then, in October 2025, he visited New Delhi and met Indian foreign minister Subrahmanyam Jaishankar.
After this meeting, Muttaqi told journalists that Kabul “has always sought good relations with India” and, in a joint statement, Afghanistan and India pledged to have “close communication and continue regular engagement”.
Besides beefing up diplomatic ties, India has also offered humanitarian support to Afghanistan under the Taliban’s rule.
After a magnitude 6.3 earthquake struck northern Afghanistan in November last year, India shipped food, medicine and vaccines, and Jaishankar was also among the first foreign ministers to call Muttaqi and offer his support. Since last December, India has also approved and implemented several healthcare infrastructure projects in Afghanistan, according to a December 2025 report by the country’s press information bureau.
Praveen Donthi, senior analyst at the International Crisis Group, told Al Jazeera that the costs of avoiding engagement with the Taliban in the past have compelled the Indian government to adopt strategic pragmatism towards the Afghan leadership this time.
“New Delhi does not want to disregard this relationship on ideological grounds or create strategic space for India’s main strategic rivals, Pakistan and China, in its neighbourhood,” he said.
Raghav Sharma, professor and director at the Centre for Afghanistan Studies at the OP Jindal Global University in India, added that the current engagement also stems from New Delhi’s pragmatic realisation that the Taliban is now in charge in Afghanistan and that there is no meaningful opposition.
“States engage in order to protect and further their interests. While there is little by way of ideological convergence, there are areas of strategic convergence, which is what has pushed India to engage with the Taliban, some of their unpalatable policies notwithstanding,” he said.
Is this a new stance towards Afghanistan?
No. India’s growing influence and engagement with Afghanistan began well before the Taliban returned to power in August 2021.
Between December 2001 and September 2014, during the US presence in Afghanistan, New Delhi was a strong supporter of the Karzai government, and then of his successor, Ashraf Ghani’s government, which was in power from September 2014 until August 2021, when the US withdrew from the country.
In October 2011, under Karzai, India and Afghanistan renewed ties by signing an agreement to form a strategic partnership. New Delhi also pledged to support Afghanistan in the face of foreign troops in the nation as a part of this agreement.
Under both Karzai and his successor, Ghani, India invested more than $3bn in humanitarian aid and reconstruction work in Afghanistan. This included reconstruction projects like schools and hospitals, and also a new National Assembly building in Kabul, which was inaugurated in December 2015 when Indian Prime Minister Narendra Modi visited Afghanistan for the first time.
India’s Border Road Organisation (BRO) also assisted Afghanistan in the development of infrastructure projects like the 218km Zaranj-Delaram highway in 2009 under Karzai’s government.
Under Ghani, New Delhi undertook building the Salma Dam project to help with irrigating Afghanistan. In June 2016, when Modi visited Afghanistan once again, he inaugurated this $290m dam project. In May 2016, Iran, India and Afghanistan also signed a trilateral trade and transit agreement on the Chabahar port.
During this period – 2001-2021 – Pakistan’s unease with New Delhi and Kabul’s new partnership grew.
In October 2011, after signing a strategic agreement with India, Karzai had assured Islamabad that while “India is a great friend, Pakistan is a twin brother”.
But Karzai was critical of Pakistan’s support for the Taliban. In his last speech as president of Afghanistan in Kabul in September 2014, he stated that he believed most of the Taliban leadership lived in Pakistan.
In a 2011 report by a Washington, DC-based think tank, the Center for Strategic and International Studies, Amer Latif, former director for South Asian affairs in the US Office of the Undersecretary of Defense for Policy, noted that Karzai was walking a “fine line between criticising Pakistan’s activities while also referring to Pakistan as Afghanistan’s ‘twin brother’.”
“It is in this context that Karzai appears to be looking to solidify long-term partnerships with countries that will aid his stabilisation efforts,” he said, referring to Karzai’s visit to India and his efforts to improve relations with the subcontinent.
When Ghani rose to power in September 2014, he tried to reset ties with Pakistan and also visited the country in November that year. But his efforts did not result in improved ties due to border disputes with Pakistan continuing until his administration was overthrown by the Taliban in August 2021.
So why has India maintained ties with Afghanistan under the Taliban?
Initially, when the Taliban returned to power in 2021 following the withdrawal of the US, political analysts largely expected Pakistan to lead the way in recognising the Taliban administration as the official government of Afghanistan, improving bilateral relations which had turned icy under Karzai and Ghani.
But relations turned hostile, with Pakistan repeatedly accusing the Taliban of allowing anti-Pakistan armed groups like the Pakistan Taliban (TTP) to operate from Afghan soil. The Taliban denies this.
Then, the deportation of tens of thousands of Afghan refugees by Pakistan in recent years further strained ties between the two neighbours.
India has ultimately taken a pragmatic approach to the Taliban in order to maintain the good relations it built with Afghanistan from 2001 to 2021, and has somewhat leveraged poor relations between Pakistan and Afghanistan to cement these.
“With Pakistan’s increasingly strained relations with Afghanistan, the logic of ‘enemy’s enemy’ is acting as a glue between Kabul and New Delhi,” International Crisis Group’s Donthi said.
He added that despite the fact that India’s Bharatiya Janata Party (BJP)-led government opposes Islamist organisations, “the strategic necessity to counter Pakistan has led it to engage with the Taliban proactively”.
India and Pakistan are nuclear-armed rivals which engaged in a four-day conflict in May 2025 after armed rebels killed Indian tourists in Pahalgam, a popular tourist spot in Indian-administered Kashmir, last April. New Delhi accused Pakistan of supporting rebel fighters, a charge Pakistan strongly denied.
For its part, Afghanistan took the opportunity to strongly condemn the Pahalgam attack and the Indian Ministry of External Affairs expressed “deep appreciation” to the Taliban for its “strong condemnation of the terrorist attack in Pahalgam … as well as for the sincere condolences”.
India has also condemned Pakistani military action in Afghanistan and has provided aid to thousands of Afghan refugees displaced from Pakistan.
So what is India’s endgame in Afghanistan?
Sharma, the OP Jindal Global University professor, said India wants to ensure that Pakistan and China, whose influence has grown in South Asia in recent years, “do not have a free run”, as “there is a divergence of interest on Afghanistan” with both Pakistan and its ally, China.
“There are security interests New Delhi is keen to further and protect for which engagement [with the Taliban] is the only option,” he added.
Anil Trigunayat, a former Indian diplomat, noted that while Afghanistan and Pakistan relations have their own dynamic, currently the Taliban leadership, even if not a monolith, refuses to play to the tunes of the Pakistan military and its intelligence agency.
“Hence they [Pakistan] accuse Indian complicity in Taliban actions in Pakistan,” he said.
But the Taliban, he said, “understands and appreciates India’s intent, policies and [humanitarian] contributions”, making its leaders keen to continue collaboration with New Delhi.
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