(SHADA: TEHRAN) -- Farhad Dejpasand stated last night in Titre Emshab (tonight's headline program) of News Network: From the media's point of view, there may be only one criterion in evaluating the stock market, but this is not the case and several indicators should be considered in evaluating the stock market.
In order for the stock market to gain more depth, the entry of companies into this market must be monitored, and therefore the acceptance and supply of companies is an important factor, the Minister of Economic Affairs and Finance added.
If the company documents are complete, it will be listed on the stock exchange within a month, but a distinction must be made between listing on the stock exchange and the initial public offering, because the offering of shares of a listed company may take some time, he continued.
With the programs that we carried out, facilities were provided to accelerate the development of the market. Ease of capital increase, tax exemptions, introduction of new financial instruments were among the things that have been done in this regard. It can be said that all financial instruments are defined in the capital market today, the Minister of Economic Affairs and Finance noted.
Dejpasand further stated that the acceptance of initial public offerings by capital market participants is a sign of a correct understanding of how to operate in the market
Emphasizing the avoidance of short-term view of the stock market by newcomers, he called the fluctuation of indices in the market a natural thing and said: There are two advantages of increasing the value of capital (stock price) and capital gains in the stock market, which makes it superior to other markets.
Holding shares is not like buying coins and gold, which only the price changes are considered, but here, in addition to share price changes, shareholders also benefit from the company's profitability , the Minister of Economy said.
Explaining the benefits of investing in the stock market, the Minister of Economy added: Shareholders should keep in mind that the stock market has two advantages over other markets. The first advantage of this market is related to increasing the stock value of assets and the second advantage is the profit that is already given to the shareholder by the companies, and in addition to having a share, there is a supplement called profit for the shareholder.
Shareholders' view of the stock market should be medium and long-term, and shareholders should accept that fluctuations are part of this market, he added.
At the beginning of the year and in the middle of the growing trend of stock market indices, we advised people to choose the stock market for investment among other markets, such as coins and currencies, and at the same time we reminded that shareholders should not restrict all your portfolios to one share, Dejpasand continued.
The Minister of Economy evaluated the purchase of stocks in the form of ETFs and in the form of stock portfolios as one of the best ways to reduce the risk of buying and said: We are currently working on other models of ETFsthat are less affected by fluctuations.
He went on to discuss some other measures taken in the field of the country's stock market and said: The important thing we have done is to create the conditions for getting a stock exchange code for over one million people and to hold electronic meetings on the stock exchange.
In response to a question about the government's tax performance, Dejpasand pointed to the coronavirus outbreak in the country and stressed that the corona is not a ‘title’ but a ‘situation’: Unfortunately, many of our industries, such as tourism and hotel management, are still closed due to the effects and consequences of the Corona epidemic, so these sectors are not able to operate.
In the eleven months of 1398, before the beginning of the Corona epidemic, the situation of corporate income tax was normal, but in 1399, we saw a different situation, the Minister of Economy said.
The negative impact of the Corona virus this year, mostly, showed itself on the VAT, but in 1400 it will affect both the VAT and the performance tax of all businesses and sectors affected by the Corona virus outbreak, he stated.
In another part of his speech regarding taxes, the Minister of Economy said that taxes are a function of other sectors such as expenses, adding: While government spending will grow by 47% in 1400, government tax revenue is projected to grow by 25%.
The Minister of Economy further said that next year about 130 thousand billion Tomans has been predicted for the repayment of the principal and interest of the issued bonds, said: Part of the increase in government spending in next year's budget stems from our efforts to improve the purchasing power of government employees in the form of rising inflation.
Tax exemptions for knowledge-based companies are essential for the formation of new economic foundations, the Minister of Economy said.
40% of our VAT has been exempted from taxes, and the fact that the country's tax revenue in the first 10 months of this year has exceeded the approved amount, even in the coronavirus conditions, shows that we have managed to prevent tax evasion as much as possible, he added.
Stating that the banking system is changing, he said: Banking reform should be shaped by a bill, not a plan; because it requires accurate expertise and compliance with Islamic banking, and accuracy should not be sacrificed for speed in this area.
Referring to the different economic periods after the victory of the Revolution, the Minister of Economic Affairs and Finance said: In different periods, we had different and influential events and conditions, and for this reason, it is not possible to compare a specific period with a period in the past, regardless of the surrounding conditions, because the country faced various phenomena such as war, sanctions, etc., and has been affected by them.
The Minister of Economy also referred to the reduction of the Gini coefficient in the Iranian economy over the past four decades and the improvement of the fair distribution of income in the country, considering the distribution of Justice Shares as one of the important measures after the revolution and added: Justice shares were distributed among 60% of the population, which led to an increase in ownership in the country.
Over the past four decades, we have been making steady progress in developing some of the foundations of the economy and infrastructure, including water, railways and highways, he said.
In response to a question about the measures taken regarding the Justice Shares, he said:
After the Supreme Leader allowed releasing the Justice Shares this year, the first stage was the period of direct and indirect elections, and the elections of the assemblies, except for five provinces, were held in absentia and electronically, but due to its invalidation, the second assemblies will be held from 13 to 27 Rajab.
The most important task of these provincial assemblies is to elect the members of the board of directors of provincial investment companies, the Minister of Economy added.