According to FilterWatch’s research, the Iranian government’s response to Mahsa Amini‘s death involved implementing stringent restrictions and unprecedented internet filtering. Consequently, numerous online businesses were forced to shut down, leading to a significant rise in unemployment in this sector and a substantial decline in income. Now, the government has introduced plans to impose taxes on these businesses, purportedly encouraging their transition to domestic platforms.
As per Peivast Journal’s report, the Iranian National Tax Administration made a significant announcement in July 2023. They stated that 123 influencers must pay around 17 billion tomans (approximately equivalent to 350,000 USD) in taxes. This requirement is in accordance with note six of the Iranian National Budget, which was approved back in 2021 and specified that users with more than 500,000 followers are obligated to pay taxes.
The report also includes information from the Iranian National Tax Administration spokesperson, stating that influencers’ income is determined through intermediary advertising companies as the criterion.
The pressure to collect taxes has been on the rise, and according to the Computer Trade Union Organization’s report in November 2022, the implementation of internet restrictions following the protests of the Woman, Life, Freedom movement has resulted in significant financial impacts on businesses. Each day, businesses have incurred losses ranging from 50 to 500 million Tomans (approximately equivalent to 1000 to 10,000 USD). The breakdown of the affected industries is as follows: 53% face daily losses of 50 million Tomans (1000 USD), 21% experience losses between 50 and 100 million Tomans (1000 to 2000 USD), 18% face losses ranging from 100 to 500 million Tomans (2000 to 10,000 USD), and nearly 8% report losses exceeding 500 million Tomans daily (more than 10,000 USD).
According to another report, Pashootan Pourpezeshk, the CEO of Podro, a startup that offers logistics services to Instagram businesses, revealed that after the implementation of Instagram filtering, a staggering 90% of these stores experienced sales losses of up to 100%. This significant decline in sales has led to a complete halt in their growth.
Amidst the financial challenges where a substantial number of businesses and influencers on major social networks have suffered income losses and are facing pressure from the tax system to pay taxes on the income that has practically been lost, the Minister of Information and Communications Technology of Iran, Eisa Zarepour, revealed on June 21, 2023, during a cabinet meeting, that the government has now approved special tax incentives for internet businesses. Among these incentives is the tax exemption offered to those who relocate their operations to domestic platforms.
Internet businesses have only two viable options: either they can remain on foreign platforms with strict filters and face the burden of paying taxes, despite the challenges in accessing these platforms, or they can opt for domestic platforms where tax calculations are comparatively lighter.
If this policy is successfully implemented, it will yield dual benefits for the Iranian regime. Firstly, it could bolster the government’s economic revenue. Secondly, it would align with the government’s long-term objectives of promoting domestic platforms, a goal that the Ministry of Information and Communications Technology of Iran ardently supports and emphasizes.
A similar policy was previously employed to encourage the usage of internal platforms in Iran. During Mohammad Javad Azari Jahromi’s term as Minister of Information and Communications Technology, the dual rate of internet traffic was implemented, encouraging users to utilize the National Information Network instead of the global Internet. While the dual-rate internet is still in place, the current approach has shifted to leveraging tax relief to incentivize individuals and businesses to remain on domestic platforms.
This report has highlighted some significant developments in Iran’s communication and internet policy from June 1 to June 30, 2023.
Developing an Identity and Facial Recognition Digital Portal for Integration with Official Systems
On June 15, 2023, the Deputy of the National Organization for Civil Registration, Afshar Khakbaz, announced their intention to initiate a tender offer for the first phase of the production of an Identity and Facial Recognition Digital Portal called “Hoda.” According to Afshar Khakbaz, this system aims to consolidate various biometric information from individuals into a centralized national digital platform. The organization intends to develop a dedicated “facial recognition” portal to be integrated into official systems.
Drafting Legislation and Strategizing the Advancement of Artificial Intelligence in Iran
On June 10, 2023, the Minister of Information and Communications Technology of Iran, Issa Zarepour, was quoted by ISNA state news agency, stating that the Supreme Council of Cyberspace is currently in the process of drafting a bill focused on advancing artificial intelligence. Moreover, Iran has been diligently shaping its national roadmap for artificial intelligence development for approximately a year and a half, and they have also established an artificial intelligence development center at the ICT Research Institute to spearhead these efforts.
Supreme Council of the Cultural Revolution Appoints Islamic Republic of Iran Broadcasting as Broadcast Media Regulator
On June 20, 2023, the article “Establishing Criteria for Regulating the Broadcast Media Sector” was approved by the Supreme Council of the Cultural Revolution. As a result, the responsibility for supervising broadcast media platforms and streaming services now falls under the jurisdiction of the Islamic Republic of Iran Broadcasting, in accordance with the “Constitution and relevant laws.”
Iran Explores Joint Cooperation with ECO Member Countries
On June 14, 2023, ISNA news agency reported a meeting between Zarepour and the Secretary General of the Economic Cooperation Organization (ECO). During the meeting, Zarepour expressed optimism about establishing collaborative efforts between Iran and ECO members. The focus areas included “creating shared digital markets, developing communication infrastructure and cyber security platforms, holding international platforms accountable, and ensuring the protection of children and families in cyberspace.”
Revised 7th Development Plan Unveiled with Updates in Communications Sector
On June 18, 2023, Iran’s parliament received the final edition of the country’s Seventh Development plan bill. The communication and internet sections underwent modifications compared to the initial draft. Notably, the digital economy’s share was raised from 10 to 15 percent, and the National Information Network (National Internet) is expected to reach 99 percent completion.
Experts Affirm the Importance of Providing Unfiltered SIM Cards to Tourists
On June 17, 2023, Ezzatollah Zarghami, Iran’s Minister of Tourism, revealed to Radio Goftegoo that experts have been convinced of the necessity of providing unfiltered SIM cards to tourists. He expressed optimism that this service would be made available soon. Zarghami stressed that offering such SIM cards as part of “Essential Tourism Services” is crucial to safeguarding Iran’s tourism industry from potential risks.
Majlis Research Center’s Report Presents Legislative Proposal for Influencers
On June 7, 2023, the Majlis Research Center issued a report investigating influencers’ activities concerning advertising and providing relevant recommendations. The proposal advises that influencers should acquire a government license for their advertising endeavors, refrain from engaging individuals under eighteen as influencers, and exclude immigration as a topic in their advertising content.
Tax Incentives for Internet Businesses: Special Support for Transitioning to Domestic Platforms
During the cabinet meeting on June 21, 2023, Zarepour revealed the approval of special tax incentives for Internet businesses. One highlighted incentive includes a tax exemption for businesses that shift to domestic platforms.
The Guardian Council Sends Cryptocurrency Tax Collection Plan Back to Parliament
The Guardian Council sent back the “Taxes on Mercantilism and Speculation” proposal to the parliament for review, citing concerns over the ambiguous definition of cryptocurrency and crypto-assets. This proposal primarily aims to implement taxes on cryptocurrencies, among other objectives.
Launch of Specialized Customs for ICT Sector Scheduled by September
On June 21, 2023, Akbar Ghanbarpour, Deputy Minister of ICT, Chairman of the Board of Directors, and CEO of Payam Air, disclosed the development of ICT customs guidelines. He expressed optimism that this customs system would be operational at Payam International Airport starting in September.
Iranian Customs Tariff for Phones Above $600 Set to Double
According to a field report by the technology news website Digiato on June 14, the customs tariff and registration fees for travelers’ mobile phones priced above $600 in Iran have doubled. This increase had been anticipated in the budget plan and has now been confirmed as implemented, as reported by Digiato.
Initiating Production of Affordable Locally Manufactured Mobile Phones with Approved Operating Systems by the Islamic Republic of Iran
Zarepour declared on June 7 the collaborative efforts between the Ministry of Industry, Mine and Trade and the Ministry of ICT to manufacture domestic mobile phones priced below $100. These phones will be equipped with an operating system approved by the Ministry of ICT.
Before this announcement, the Deputy Minister of ICT had revealed plans to allocate facilities amounting to 500 billion tomans (approximately 10 million USD) for this initiative.
It’s worth noting that local mobile phone production is one of the objectives assigned to the Ministry of ICT by the Supreme Council of Cyberspace.
Introduction of Layered Internet Service at Tehran’s Pardis Technology Park
On June 3, 2023, Digiato, Iran’s technology sector website, released a letter on behalf of Pardis Technology Park officials, which called upon businesses operating within the park, including startups, to provide the names of their employees for enrollment in “Fanavaran” layered internet system.
US Treasury Imposes Sanctions on Abr Arvan Company and Its Senior Managers
On June 2, 2023, the United States Department of the Treasury imposed sanctions on Abr Arvan and ArvanCloud Global Technologies (based in Dubai) for their alleged involvement in facilitating internet censorship. Additionally, the CEO of Abr Arvan, Pouya Pirhosseinloo, and the technical director and founder of Abr Arvan, Farhad Fatemi, were also included in the list of individuals subject to these new sanctions.
Introducing Dedicated Internet and Communication Service for Arba’een Walk
ISNA state news agency announced on June 28 that exclusive roaming and internet services tailored for the Arba’een Walk in Iraq have been introduced. These custom services, offering unlimited internet and special roaming, are the result of a joint endeavor with the Iraqi authorities.
Improving Digital Communication Quality through Internet Traffic Distribution
On June 22, Amir Mohammadzadeh Lajevardi, the head of the Communications Regulatory Authority of Iran, revealed the launch of the “Distribution of Internet Traffic in Iran” project. This initiative is designed to enhance communication quality in the country “by decentralizing internet traffic and content” away from Tehran. The project involves amending the tariff plan for cloud services with the goal of achieving this decentralization.
