The decision was made during a recent meeting of the Supreme Council of Economic Coordination, attended by the heads of the three executive, legislative, and judicial branches of Iran's government.
Supporting capital market growth was one of the main themes of the session, among other grand goals such as focusing on job creation, revitalizing domestic production and financing key economy sectors, Security and Exchange News Agency (SENA) reported.
Officials at the meeting decided to cut Financial Transaction Tax (FTT) paid by the selling side on each equity trade from 0.5% to 0.1% for the next 12 months.
The fourth meeting of the Council, headed by President Hassan Rouhani, convened with top economic officials in attendance where they reviewed proposals for financing the productive sectors of the economy and approved a handful of them.
They also decided to exempt companies from income tax on capital raise if they funnel their retained earnings for capital increase and use the fund for development plans.
With no taxes in the way, the move is expected to ease capital increase for firms, as bureaucratic hassles have been causing the process to take at least nine months.
Release Date: 7/10/2018