Wednesday, June 5, 2013

In Tehran, steel gates or the street economy

Iran raised taxes by 30 percent last year and the government has proposed another 38 percent increase this year. In response, many merchants in Tehran's Grand Bazaar have rolled down their steel gates and closed their businesses. Money quote, from Hossein, a merchant who spoke with the Financial Times: "These days you can rely on your mobile phone like street dealers who pay no taxes for buying and selling dollars. But if I sit in my shop then I have to pay tax" In some sections of the Bazaar, only 14 percent of the stores are still open.

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