The Role of Fiscal Policies in Fighting Poverty and Reducing Inequality in Iran with a Focus on Energy Subsidies Reform

This study assesses the impact of fiscal policy reforms on inequality and poverty in Iran. Special attention is given to a December 2010 reform that replaced subsidies on energy products, water and bread with a lump-sum cash transfer. The study applies the well-established Commitment to Equality framework in order to provide a relatively comprehensive picture of tax and transfer policies and to determine how effective they are at reducing inequality and poverty.