Details, details
There are several important supplements to textbook accounts of Iranian politics in Thomas Erdbrink's report in the Washington Post and Nazila Fathi's article in the New York Times. Their descriptions of the roles played by the bazaaris in Iranian politics are worth noting.Iran Halts New Sales Tax After Merchants Strike
"A series of private-sector strikes has forced the Iranian government to suspend the implementation of a new sales tax borne most heavily by the politically powerful merchant class, marking a setback for President Mahmoud Ahmadinejad's plans for economic change.
"In a rare show of public protest, angry shopkeepers refused Wednesday for the second straight day to open stores in the central bazaar in the city of Esfahan. Many shopkeepers in Tehran, Mashad and Tabriz also refused to sell goods in protest of a tax measure that took effect in the final week of September..."The measure is one element of Ahmadinejad's plan to revise the country's antiquated tax code and banking systems... The president's goal is to cut government spending and lower inflation, which rose in September to 29.4 percent, according to Iran's Central Bank...
"The bazaars, traditionally the business centers of Iranian cities, are also hubs of political ferment... The shopkeepers played an important role in the eventual downfall of the Western-backed Shah Mohammad Reza Pahlavi, using private-sector strikes and their financial resources to support his opponents...
"'The situation in the Esfahan bazaar was very chaotic,' Mohammad Aref, the head of the council of associations, told the Iranian Labor News Agency. 'There were worries that the strike would turn political. The law has now been postponed.'...
"Many merchants in Tehran said they did not object to paying the sales tax but feared the implementation would be arbitrary.
"'In Iran, if you have connections, you don't have to pay any taxes,' said Mahmoud Askari, a carpet salesman in the Tehran bazaar. 'But we don't have those connections. So we probably have to pay double.'..."
The New York Times account adds more valuable textbook supplement.
Tax Delay Fails to Quell Iranian Protest
"A strike in Iran’s traditional bazaars expanded on Sunday despite an order by President Mahmoud Ahmadinejad to suspend a new tax on sales that ignited the protest more than a week ago.
"The main entrance to the Grand Bazaar in Tehran was closed, as major traders like carpet and textile merchants joined the jewelers, who had started the strike in Tehran. The strike continued in the traditional bazaars in several other large cities, including Isfahan, where it erupted first on Oct. 4...
"Bazaars are the backbone of the country’s traditional economy. The merchants wield significant power, and this is the first time since the 1979 Islamic Revolution, in which they helped overthrow the shah, that they have protested on so large a scale...
"Last year, Parliament approved the tax in an effort to increase the government’s revenue and make the traditional trade more transparent. The government began enforcing the law in late September, at a time when the annual inflation rate was hitting 30 percent and traders were frustrated by a decline in sales. International sanctions were also taking their toll.
"'Merchants do not want to pay sales tax,' said the carpet seller who declined to be quoted by name. 'There has been little trade in the bazaar since March because of the inflation. We cannot import or export anything because of bad relations with most countries and economic sanctions. And the government is increasing the pressure by enforcing new regulations every day.'...
"Meanwhile, traditional traders at the bazaar have resisted modernization and greater transparency, lest they be further exposed to taxes and government regulation.
"The bazaar guilds wield great power. Different trades have their own guilds, which set import and export rules and price regulations. They have an efficient network to mobilize the merchants and enforce their decisions.
"After the revolution, many influential traders had positions in the government, and the government counted on the bazaar as a powerful ally...
"Sarmayeh published an analysis on Sunday that said the rift between the government and the bazaar suggested mistrust of government economic policies from different sectors of society.
"'Even the affluent section of society feels threatened,' the newspaper quoted Saeed Madani, a sociologist and university professor, as saying. Mr. Madani was referring to rich traders who have joined the strike..."
Labels: civil society, economics, Iran, politics
posted by Ken Wedding @ 6:22 AM
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