The economy of the Islamic Republic of Iran, with its objectives of achieving
the economic independence of the society, uprooting poverty and deprivation, and
fulfilling human needs in the process of development while preserving human
liberty, is. based on the following criteria:
The economy of the Islamic Republic of Iran is to consist of three sectors:
state, cooperative, and private, and is to be based on systematic and sound
planning. The state sector is to include all large-scale and mother industries,
foreign trade, major minerals, banking, insurance, power generation, dams and
large-scale irrigation networks, radio and television, post, telegraph and
telephone services, aviation, shipping, roads, railroads and the like; all these
will be publicly owned and administered by the State. The cooperative sector is
to include cooperative companies and enterprises concerned with production and
distribution, in urban and rural areas, in accordance with Islamic criteria. The
private sector consists of those activities concerned with agriculture, animal
husbandry, industry, trade, and services that supplement the economic activities
of the state and cooperative sectors. Ownership in each of these three sectors
is protected by the laws of the Islamic Republic, in so far as this ownership is
in conformity with the other articles of this chapter, does not go beyond the
bounds of Islamic law, contributes to the economic growth and progress of the
country, and does not harm society. The [precise] scope of each of these
sectors, as well as the regulations and conditions governing their operation,
will be specified by law.
Public wealth and property, such as uncultivated or abandoned land, mineral
deposits, seas, lakes, rivers and other public water- ways, mountains, valleys,
forests, marshlands, natural forests, unenclosed pastureland, legacies without
heirs, property of undetermined ownership, and public property recovered from
usurpers, shall be at the disposal of the Islamic government for it to utilize
in accordance with the public interest. Law will specify detailed procedures for
the utilization of each of the foregoing items.
Everyone is the owner of the fruits of his legitimate business and labor, and
no one may deprive another of the opportunity of business and work under the
pretext of his right to ownership.
Private ownership, legitimately acquired, is to be respected. The relevant
criteria are determined by law.
There must be no discrimination among the various provinces with regard to
the exploitation of natural resources, utilization of public revenues, and
distribution of economic activities among the various provinces and regions of
the country, thereby ensuring that every region has access to the necessary
capital and facilities in accordance with its needs and capacity for growth.
The government has the responsibility of confiscating all wealth accumulated
through usury, usurpation, bribery, embezzlement, theft, gambling, misuse of
endowments, misuse of government contracts and transactions, the sale of
uncultivated lands and other resources subject to public ownership, the
operation of centers of corruption, and other illicit means and sources, and
restoring it to its legitimate owner; and if no such owner can be identified, it
must be entrusted to the public treasury. This rule must be executed by the
government with due care, after investigation and furnishing necessary evidence
in accordance with the law of Islam.
The preservation of the environment, in which the present as well as the
future generations have a right to flourishing social existence, is regarded as
a public duty in the Islamic Republic. Economic and other activities that
inevitably involve pollution of the environment or cause irreparable damage to
it are therefore forbidden.
No form of taxation may be imposed except in accordance with the law.
Provisions for tax exemption and reduction will be determined by law.
The annual budget of the country will be drain up by the government, in the
manner specified by law, and submitted to the Islamic Consultative Assembly for
discussion and approval. Any change in the figures contained in the budget will
be in accordance with the procedures prescribed by law.
All sums collected by the government will be deposited into the government
accounts at the central treasury, and all disbursements, within the limits of
allocations approved, shall be made in accordance with law.
The National Accounting Agency is to be directly under the supervision of the
Islamic Consultative Assembly. Its organization and mode of operation in Tehran
and at the provincial capitals, are to be determined by law.
The National Accounting Agency will inspect and audit, in the manner prescribed by law, all the accounts of ministries, government institutions and companies as well as other organizations that draw, in any way, on the general budget of the country, to ensure that no expenditure exceeds the allocations approved and that all sums are spent for the specified purpose. It will collect all relevant accounts, documents, and records, in accordance with law, and submit to the Islamic Consultative Assembly a report for the settlement of each year's budget together with its own comments. This report must be made available to the public.