Iran Economy in Brief – No. 72

Unoccupied apartments are due taxation

Owners of unoccupied housing units will be required to pay taxes, based on the new direct taxation law. The Ministry of Roads and Urbanization has set up an online platform to collect taxes from empty houses across the country.

The Tehran Union of Mass Property Developers has announced that approximately 2.5 million residential units are unoccupied across the country. This corresponds to a 200 million Dollar investment. It is estimated that nearly 500,000 apartments are empty in Tehran.

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Number of Tehran-Ramsar flights to be doubled.

In the Month of June of the current year the number of flights between Tehran and Ramsar increased to 11 flights per week; up from only 5 flights previously. Khalil Gholami, the Director of Aseman Airli

nes in Ramsar said: “The flights between Tehran-Ramsar and Ramsar-Mashhad will be carried out by an ATR plane purchased recently by Aseman Airlines which has the capacity to transport 60 people.”

The distance between Tehran and Ramsar, one of the cities in the north of Iran, located between Mazandaran and Gilan provinces, is 280 kilometers by land via Chalus Road. Due to limited capacity, the road experiences very heavy traffic during holiday seasons. This had led to interest in flights between the two cities. A secondary land route is also available via Ghazvin which is approximately 420 kilometers long.


Power consumption in summer beyond the production capacity

The sharp rise in power consumption has caused worry for the Iran Power Generation, Transmission & Distribution Company (Tavanir). Tavanir announced that in the last week, peak consumption reached 50,000 Megawatts which shows a 10% increase compared to last year.

Tavanir says it is ready to handle consumption up to 7% more than the year before, but the growing trend might go beyond the current capacities.

The increased load in Ahwaz, the capital city of Khuzestan due to hot weather led to several substations catching fire on Sunday, 18 June 2017, which caused black-outs throughout the city.

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Oil fields need modern technologies

While Iran’s neighbors are accessing and developing joint oil fields, Iran is still holding out on using new oil contracts. Bijan Zangeneh, the Minister of Oil, had hoped to sign the first contract of the Iran Petroleum Contract form, known as IPCs, between Iran and one of the oil giants before the end of June 2017. However, due to existing problems this goal has not yet been realized. Mr Zangeneh called any delay in carrying out new oil contracts, IPC, treason to this industry.

The Deputy of the Research Institute of the Petroleum Industry, Mansour Bazmi, also warned: “A large portion of Iranian oil fields are in the second half of their lives and there is a need to increase their production. This can only be done by employing the latest technologies available in the world.”

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