Historical Evolution of Iran’s Financial Administration

Since the Achaemenid era, Iran has maintained structured institutions for tax collection and fiscal management. During the Sassanid period, the taxation system became more formalized, comprising three main categories: land tax, poll tax, and capitation tax.Following the Arab conquest, under the administration of Hajjaj ibn Yusuf, fiscal offices transitioned from Persian to Arabic. However, during the Seljuk era, Abdul Malik Kondori, the minister o to Sultan Tughril, reinstated Persian as the administrative language for financial affairs.In the Safavid period, customs duties and foreign trade revenues were incorporated into the national tax system, which expanded further under the Afsharid dynasty. The Qajar era witnessed fiscal stagnation due to military conflicts, extravagant royal expenditures—including European travels—and administrative inefficiencies. Amir Kabir, the reformist prime minister, introduced foundational regulations for treasury management, budget discipline, and public finance oversight.Prior to the Constitutional Revolution (1906), the monarch exercised absolute control over state revenues and expenditures. Budget preparation was delegated to the Wazir Daftar (Minister of Finance), while provincial financial affairs were managed by Mustofi (chief accountant). Each Mustofi supervised a team of clerks known as Mirza Qalamdan, and the highest-ranking official, Mostofi al-Mamalek, functioned as the de facto Minister of Economy.With the advent of constitutional governance, Nasser al-Molk became the first legally appointed Minister of Finance, receiving parliamentary approval from the National Consultative Assembly (Majles Shoraye Melli). Under his directive, the Customs Office—then located at the current site of Radio Tehran—was integrated into the Ministry of Finance. In 1919, the ministry was formally structured into seven departments, including the General Treasury, Customs Administration, and Revenue Collection Bureau. The ministry later relocated to Atabak Park, now the site of the former Soviet Embassy.According to Law No. 1294, the Ministry of Finance was reorganized into several departments including:

• Ministerial Affairs• Revenue and Coinage Assessment• General Treasury and Public Debt• Customs Administration• Financial Courts• Drafts and Disbursement Commission• Personnel and Logistics• Supreme Advisory Council for Administrative Tribunals

Post-1921 reforms led to the creation, and eventual dissolution ,of approximately forty state-owned enterprises (SOEs). The ministry was bifurcated into financial and economic divisions, overseen by two deputy ministers and seven directors. In 1950, a streamlined organizational structure was approved, reducing departmental complexity.Finally, in 1974, the Law on the Establishment of the Ministry of Economic Affairs and Finance was ratified by the National Assembly, comprising six articles that formally defined the ministry’s mandate in fiscal policy, economic planning, and financial oversight.