TEHRAN // One week after parliament and the Guardian Council approved a controversial bill to begin cutting energy subsidies, the president is seen as hoping to squeeze more resources out of it than the bill originally allowed.
The conflict has raised concern among parliamentarians and ordinary Iranians as legislators prepare to debate next year's budget.
Iran has been paying about US$100 billion (Dh367bn) yearly to subsidise energy, water, some foodstuffs and such services as postal and aviation. The subsidy reform bill sees cutting the subsidies by $20bn a year for five years.
Mahmoud Ahmadinejad's proposed budget predicts resources acquired from cutting the energy subsidies will amount to about $40bn, double the amount permitted by parliament in the first year of the reform plan.
This puts Mr Ahmadinejad in direct conflict with parliament. Indeed, his budgetary wish is seen by some as a sign of disdain for the parliamentary legislation. The president had to wait until last week to submit his budget to parliament - two and a half months after a parliamentary deadline for receipt of the budget had passed - because of the time it took in resolving the impasse over the subsidy reform law.
When passing the law last month, parliament introduced a number of amendments to the government bill. Changes included requiring the government to cut subsidies gradually over five years. The government had desired a free hand in conducting the reform.
To meet Mr Ahmadinejad's desired $40bn in resources means prices might rise higher and faster than expected. By way of example, one legislator, Jafar Ghaderi, quoted by the Tehran Emrouz newspaper, said the government would need to quadruple the price of petrol to 4,000 rials (Dh1.48) per litre in the next fiscal year.
"I am sorry that by persisting on Mr Ahmadinejad's views, the government is ignoring [parliament's] legislation and is setting the parliament against itself" by asking it to ignore its own legislation when putting the budget bill to vote, Ahmad Tavakkoli, a legislator and head of parliament's research centre, which offers advice to legislators, said according to Fars News Agency.
"Parliament's insistence that the reform plan be carried out over a five-year period is meant to prevent grinding growth of inflation," Mr Tavakkoli said.
Other legislators have repeatedly warned that cutting energy subsidies could cause the rate of inflation to shoot up to as high as 60 per cent within a year.
When offering his budget bill to parliament on January 24, however, Mr Ahmadinejad told legislators that inflation would drop to five per cent within two and a half years of implementation of the subsidy reform. The annual rate of inflation stands at 18.5 per cent now.
According to the law, to make up for the rise in the price of utilities and other commodities, the government is required to compensate all families in cash or by other unspecified means.
Mr Ahmadinejad has on many occasions promised the public that scrapping subsidies and paying cash compensation to families will help lower-income families, who consume less of such subsidised commodities as energy and thus benefit less from government subsidies, to improve their living standards.
How much each Iranian family will receive in compensation will depend on the number of family members and its income status. Parliament did not include a compensation formula in the law and left the decision of how much to pay and who to pay to the government.
"One government official says the compensation will be paid to 70 per cent of people and another says it will be paid to all," one legislator, Ali Hosseini, was quoted by the Donyaye Eghtesad newspaper as complaining to parliament on Sunday.
Two weeks ago, Mohammad Madad, the head of Iran's statistics centre, appeared on state television to say income declarations made in the summer of 2008 show there are 10 definable family income groups in the country. Of these, seven lower-income groups of families, comprising 47.6 million individuals, would receive priority a cash compensation.
Mr Madad, however, was later contradicted by other officials, including the economy minster, Shameddin Hosseini, who said everyone could benefit from the cash compensation.
Such contradictory statements have spread concern among many people, who fear they will not be compensated in cash when prices shoot up.
To try to clear up the confusion, a committee formed by the government to carry out the subsidy reforms issued an official statement on Monday that said all "applicants" were to be eligible for compensation. Still, the statement did not specify whether the compensation would be in cash or other means.
"I can't understand why we were required to fill in all those income declaration forms if everyone is going to get compensation. My income is not even remotely comparable to the people in the top three income groups I have been grouped with, and who I thought were not going to receive compensation," Sahar Aghaie, 35, a teacher, said. "Now there is something different and the government says everyone will receive compensation. I'm still confused."
msinaiee@thenational.ae
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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Company Profile
Company name: Fine Diner
Started: March, 2020
Co-founders: Sami Elayan, Saed Elayan and Zaid Azzouka
Based: Dubai
Industry: Technology and food delivery
Initial investment: Dh75,000
Investor: Dtec Startupbootcamp
Future plan: Looking to raise $400,000
Total sales: Over 1,000 deliveries in three months
Anxiety and work stress major factors
Anxiety, work stress and social isolation are all factors in the recogised rise in mental health problems.
A study UAE Ministry of Health researchers published in the summer also cited struggles with weight and illnesses as major contributors.
Its authors analysed a dozen separate UAE studies between 2007 and 2017. Prevalence was often higher in university students, women and in people on low incomes.
One showed 28 per cent of female students at a Dubai university reported symptoms linked to depression. Another in Al Ain found 22.2 per cent of students had depressive symptoms - five times the global average.
It said the country has made strides to address mental health problems but said: “Our review highlights the overall prevalence of depressive symptoms and depression, which may long have been overlooked."
Prof Samir Al Adawi, of the department of behavioural medicine at Sultan Qaboos University in Oman, who was not involved in the study but is a recognised expert in the Gulf, said how mental health is discussed varies significantly between cultures and nationalities.
“The problem we have in the Gulf is the cross-cultural differences and how people articulate emotional distress," said Prof Al Adawi.
“Someone will say that I have physical complaints rather than emotional complaints. This is the major problem with any discussion around depression."
Daniel Bardsley
Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
PROFILE OF STARZPLAY
Date started: 2014
Founders: Maaz Sheikh, Danny Bates
Based: Dubai, UAE
Sector: Entertainment/Streaming Video On Demand
Number of employees: 125
Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners
Kanguva
Director: Siva
Stars: Suriya, Bobby Deol, Disha Patani, Yogi Babu, Redin Kingsley
THE SPECS
Engine: 6.0-litre, twin-turbocharged W12
Transmission: eight-speed automatic
Power: 626bhp
Torque: 900Nm
Price: Dh1,050,000
On sale: now
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%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E3.5-litre%2C%20twin-turbo%20V6%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E10-speed%20auto%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E410hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E495Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Estarts%20from%20Dh495%2C000%20(Dh610%2C000%20for%20the%20F-Sport%20launch%20edition%20tested)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
The specs: 2018 Dodge Durango SRT
Price, base / as tested: Dh259,000
Engine: 6.4-litre V8
Power: 475hp @ 6,000rpm
Torque: 640Nm @ 4,300rpm
Transmission: Eight-speed automatic
Fuel consumption, combined: 7.7L / 100km
Indoor Cricket World Cup
Venue Insportz, Dubai, September 16-23
UAE squad Saqib Nazir (captain), Aaqib Malik, Fahad Al Hashmi, Isuru Umesh, Nadir Hussain, Sachin Talwar, Nashwan Nasir, Prashath Kumara, Ramveer Rai, Sameer Nayyak, Umar Shah, Vikrant Shetty
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Wicked
Director: Jon M Chu
Stars: Cynthia Erivo, Ariana Grande, Jonathan Bailey
The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
SPECS
Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now
MATCH INFO
Uefa Champions League semi-final, first leg
Barcelona v Liverpool, Wednesday, 11pm (UAE).
Second leg
Liverpool v Barcelona, Tuesday, May 7, 11pm
Games on BeIN Sports
The specs
Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)
More from Neighbourhood Watch:
A Prayer Before Dawn
Director: Jean-Stephane Sauvaire
Starring: Joe Cole, Somluck Kamsing, Panya Yimmumphai
Three stars
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COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
The specs: 2018 Ducati SuperSport S
Price, base / as tested: Dh74,900 / Dh85,900
Engine: 937cc
Transmission: Six-speed gearbox
Power: 110hp @ 9,000rpm
Torque: 93Nm @ 6,500rpm
Fuel economy, combined: 5.9L / 100km
KYLIAN MBAPPE 2016/17 STATS
Ligue 1: Appearances - 29, Goals - 15, Assists - 8
UCL: Appearances - 9, Goals - 6
French Cup: Appearances - 3, Goals - 3
France U19: Appearances - 5, Goals - 5, Assists - 1
COMPANY%20PROFILE%20
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Haltia.ai%0D%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202023%0D%3Cbr%3E%3Cstrong%3ECo-founders%3A%3C%2Fstrong%3E%20Arto%20Bendiken%20and%20Talal%20Thabet%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%0D%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20AI%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2041%0D%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20About%20%241.7%20million%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Self%2C%20family%20and%20friends%26nbsp%3B%3C%2Fp%3E%0A
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
Company%C2%A0profile
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