Iranian President Mahmoud Ahmadinejad has postponed the implementation of VAT for two months as a result of nationwide protests, strikes and social disturbances.
Many shopkeepers in Iran's traditional bazaars in Tehran and Tabriz had been on strike over the past couple of days in protest against the introduction of the three percent tax, which went into effect on September 22.
According to Ahmadinejad, "The plan will be on hold for the next two months in a bid to implement a suitable tax law and remove the obstacles and problems facing the proper execution of the law."