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.
NEW YORK (AP) — Oil prices rose in early trading Sunday as a standoff between Iran and the U.S. prevented tankers from using the Strait of Hormuz, the Persian Gulf waterway that is crucial to global energy supplies.
The price of U.S. crude oil increased 6.4% to $87.90 per barrel an hour after trading resumed on the Chicago Mercantile Exchange. The price of Brent crude, the international standard, climbed 5.8% to $95.64 per barrel.
The market reaction followed more than two days of lifted hopes and dashed expectations involving the strait. Crude prices plunged more than 9% Friday after Iran said it would fully reopen the strait, which it effectively controls, to commercial traffic.
Tehran reversed that decision and fired on several vessels Saturday after President Donald Trump said a U.S. Navy blockade of Iranian ports would remain in effect. On Sunday, Trump said the U.S. attacked and forcibly seized an Iranian-flagged cargo ship that allegedly tried to get around the blockade. Iran’s joint military command vowed to respond.
Sunday’s higher prices wiped out much of the declines seen Friday, signaling renewed doubts about how soon ships will again transport the vast amounts oil the world gets from the Middle East.
The US-Israeli war against Iran, now in its eighth week, has created one of the worst global energy crises in decades. Countries in Asia and Europe that import much of their oil from the Gulf have felt the most impact of halted supplies and production cuts, although rapidly rising gasoline, diesel and jet fuel prices are affecting businesses and consumers worldwide.
Asked when he thought U.S. motorists would again see gas cost less than $3 a gallon on average, Energy Secretary Chris Wright said prices at the pump might not go down that much until next year.
“But prices have likely peaked, and they’ll start going down,” Wright told CNN’s “State of the Union” on Sunday.
The price of crude oil — the main ingredient in gasoline — has fluctated dramatically since the U.S. and Israel attacked Iran on Feb. 28, and as Iran retaliated with airstrikes on other Gulf states. Crude traded at roughly $70 a barrel before the conflict, spiked to more than $119 at times, and previously closed Friday at $82.59 for U.S. oil and $90.38 for Brent.
Industry analysts have repeatedly warned that the longer the strait is closed, the worse prices could get.
A fragile, two-week ceasefire between the U.S. and Iran is set to expire Wednesday, while escalating tensions in the Strait of Hormuz puts the fate of new talks to end the war into question.
Even if a lasting deal to reopen the Strait of Hormuz emerges, analysts say it could take months for oil shipments to return to normal levels and for fuel prices to go down. Backed-up tanker traffic, shipowners concerned about another sudden escalation, and energy infrastructure damaged during the war are factors that could impede production and shipment volumes from returning to pre-war levels.
A gallon of regular gas cost an average of nearly $4.05 a gallon in the U.S. on Sunday, according to motor club federation AAA. That’s about 8 cents lower than a week ago, but far higher than $2.98 before the war.
Trump warns Iran it ‘can’t blackmail’ US with Hormuz closure
Fox News reports on heightened tensions in the Middle East as Iran’s Revolutionary Guard reaffirms strict control over the Strait of Hormuz and fires on passing ships. President Donald Trump, speaking from the Oval Office, states the US naval blockade will remain in full force. White House correspondent Alex Hogan provides updates on the escalating diplomatic and military standoff.
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Hundreds of commercial tankers are stranded on both sides of the Strait of Hormuz after Iran shut the critical chokepoint on April 18, halting traffic and leaving crews trapped amid reports of gunfire and “traumatic experiences” on board.
The Strait of Hormuz is considered an international waterway under international law, through which ships have the right of transit passage, according to the United Nations Convention on the Law of the Sea (UNCLOS).
Roughly one-fifth of the world’s oil supply passes through the Strait of Hormuz, making it a critical chokepoint for global energy markets, according to the U.S. Energy Information Administration.
The U.K. Maritime Trade Operations (UKMTO) said Iranian gunboats opened fire on a tanker the same day, while a projectile struck a container vessel, damaging cargo.
STARMER AND MACRON ACCUSED OF ‘PLAYING AT BEING RELEVANT’ WITH STRAIT OF HORMUZ PLAN
U.S. Central Command said Tuesday that “U.S. Navy guided-missile destroyers are among the assets executing a blockade mission impacting Iranian ports.” (CENTCOM)
Audio released by maritime monitoring group TankerTrackers appears to capture the moment a vessel and its crew came under fire while approaching the strait, including a distress call from a crew member.
“Sepah Navy! Motor tanker Sanmar Herald! You gave me clearance to go… you are firing now. Let me turn back!” the crew member can be heard saying in the recording, according to TankerTrackers.
Iranian state media confirmed that shots were fired near vessels to force them to turn back, while the Ministry of External Affairs of the Government of India said the foreign secretary was deeply concerned.
Hapag-Lloyd, the world’s fifth-largest container shipping line, told Fox News Digital that it had activated a crisis team as its crews remain stuck on board vessels in the region.
“We have been working from Friday afternoon until today with the entire crisis team to bring the vessels out — in vain, unfortunately,” said Nils Haupt, senior director of group communications at Hapag-Lloyd AG.
“These events can easily lead to traumatic experiences. There is also a significant risk from sea mines, which has made insuring vessels for passage through the Strait nearly impossible.”
LISA DAFTARI: HORMUZ WHIPLASH PROVES TEHRAN CAN’T HONOR ANY DEAL IT SIGNS
“The crews are well, but they are becoming increasingly impatient and frustrated. It is very unfortunate that we could not leave today,” he added. “Many ships are still stuck in the Persian Gulf.”
“Our six ships are anchored near the port of Dubai, and all crews hope for an improvement in the situation,” Haupt said.
The Islamic Revolutionary Guard Corps (IRGC) said on April 18 that the strait would remain closed until the U.S. lifts its blockade on Iranian ports, warning ships not to move from anchorage or risk being treated as “enemy” collaborators.
Iran has previously argued that restrictions on its oil exports and shipping amount to “economic warfare,” framing actions in the Strait of Hormuz as a response to foreign pressure on its economy, according to statements from Iranian officials and state media in past incidents.
“Approaching the Strait of Hormuz will be considered cooperation with the enemy, and any violating vessel will be targeted,” the IRGC said in a statement carried by the semi-official Tasnim News Agency.
TRUMP ORDERS A BLOCKADE IN THE STRAIT OF HORMUZ AS TENSIONS WITH IRAN SOAR
Fishing boats dot the sea as cargo ships, in the background, sail through the Arabian Gulf toward the Strait of Hormuz off the United Arab Emirates, Friday, March 27, 2026. (AP Photo)
The United States imposed the blockade on Iranian ports to pressure Tehran to reopen the strait, with U.S. Central Command saying the measures are being enforced “impartially against all vessels.”
Hapag-Lloyd said its vessels have been stuck for weeks following the initial closure after the outbreak of war with Iran on Feb. 28.
“For us, it is critical that our vessels can pass through the strait soon,” Haupt said.
“We offer all crew members unlimited data so they can video call loved ones and access entertainment. Crews are strong, but after weeks on board there is growing monotony and frustration.”
“One crew experienced a fire on board from bomb fragments. Others have seen missiles or drones near their vessels,” he added.
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“They are resilient, but each additional day makes the situation more difficult, more monotonous, and more stressful.”
President Donald Trump said Iran had agreed not to close the strait again but after the closure, Trump called the situation “blackmail” and said the U.S. would not back down.
Shops and schools shut in northern Israel as residents protested a 10-day ceasefire with Lebanon that took effect on April 16, saying “nothing was achieved”. Israeli officials say operations may continue, with forces still deployed inside southern Lebanon.
Published On 19 Apr 2026
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