Iran to Cut Cash Subsidies for 27 Million People, Lawmaker Warns of Protests

Iranwire – Iran’s government plans to stop paying cash subsidies to 27 million people, with 7 million already cut off, prompting warnings from a lawmaker that the move could trigger protests.

Ahmad Meydari, minister of labor and social affairs, said the cuts are based on a parliamentary resolution.

Ali Kord, a member of parliament’s Social Commission, warned the subsidy cut could cause protests despite the small payment amounts.

“Although the subsidy amount is low, cutting it can lead to social tensions and protests,” Kord said after Meydari’s parliamentary session.

Kord called the subsidy cuts “inappropriate and unethical” and said they would provide material for “enemies of Islam, foreign news agencies, and networks opposed to the system.”

The Pezeshkian government cited budget deficits and lack of resources as reasons for eliminating the subsidies.

Kord said the cuts target the top three income deciles but will harm vulnerable populations.

“Those from vulnerable classes, the disadvantaged, rural, and tribal people will be excluded from receiving subsidies,” Kord said.

He said many citizens in remote border areas lack identity documents and cannot register property or vehicles in their names.

When relatives register these assets for legal purposes, it disqualifies the undocumented people from subsidies based on government data showing assets under their relatives’ names.

Saeed Alizadeh, a social security retiree activist, said 3.062 million people lost subsidies over two months based on the September subsidy payment data.

“Some of these people are construction workers, school janitors, cultural retirees, or social security retirees,” Alizadeh said.

“The government and Ministry of Labor must answer what positive development has happened for these 3.062 million people in the past year that they should no longer receive subsidies.”

Meydari said individuals targeted for subsidy cuts are informed about their recorded income levels and can dispute the information by requesting field inspections.

It comes as a researcher at Iran’s Parliamentary Research Center said 26 million Iranians, or 30 per cent of the population, live in absolute poverty.

Hadi Mousavi-Nik, a member of the Parliamentary Research Center, said the figure exceeds the global average and shows the failure of the Islamic Republic’s economic policies.

He added that 4 million Iranians live in extreme poverty, a condition where “people’s income doesn’t even cover their daily food.”