One of the drawbacks of expanding business into other states: more sales taxes to worry about tracking. Of course, you could always take this approach.

After the Iranian government planned to implement a new national sales tax, businesses country-wide shut their doors for two days. The new tax would require merchants to pay the government 3% of their gross sales receipts.

In turn, that would lead to price increases passed on to consumers to make up the losses.

Even though the protest paid off and the government temporarily backed down from the new tax, it’s only a matter of time until another sales tax measure is introduced. They’re all part of President Ahmadinejad’s plan to revamp Iran’s banking system and tax code, which are considered antiquated.

Popularity: 1% [?]

Tags: Banking system, Gross sales receipts, Iran, Sales Tax