Tehran’s central bazaar which is considered the economic heart of the Iranian economy carried out a one-day strike yesterday by closing most of the shops. The ostensible reason for the shutdown was a disagreement with the state tax office over the level of taxes to be paid for the Iranian fiscal year, which ranges from March 2009 to March 2010.
Iran appears to have entered into a recession. An Iranian newspaper estimated the floating of checks worth the equivalent of $4 billion without coverage as a sign of economic difficulties. In October 2008 the Grand Bazaar of Tehran and other bazaars went on strike for a number of days forcing the government to rescind a decision to increase the value added tax (VAT). The bazaar merchants brought about the downfall of the Shah regime and the rise of Khomeini following a prolonged strike.
The Bazaars have often sided with Rafsanjani against president Ahmadinejad.
Source: Al-Sharq Al-Awsat, London, July 7, 2010
