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municipality oversight
News

Iran’s Government Opposes Shifting Oversight of Ride-Hailing Services to Municipalities

Iran opposes Parliament’s move to shift ride-hailing license authority to municipalities, advocating for private sector trust and guild-based systems.

Elyas
Written by Elyas | 16 September 2025 | 10:52

Hossein Afshin, the Vice President for Science, Technology, and Knowledge-Based Economy, has criticized the Iranian Parliament's decision to transfer the authority for issuing licenses for ride-hailing services to municipalities. He affirmed that the government opposes this approach and views the guild-based model as the most suitable framework for the continued operation of such businesses.

In an interview, Afshin highlighted modifications made by Parliament to the government’s proposed public transportation bill. He clarified that the original draft of the bill did not intend to alter the licensing authority for ride-hailing services.

"What happened was that the government submitted a bill to Parliament aimed at improving public transportation, and this bill never sought to change the authority for issuing ride-hailing service licenses," Afshin explained. "As in many countries where licensing falls under the jurisdiction of industry guilds, we have followed the same model, which has worked without issues so far."

Afshin noted that licensing had previously been managed by the relevant guilds, with the government playing only a supervisory and policymaking role. However, Parliament introduced Article 17 into the bill, which transfers licensing authority to municipalities.

Emphasizing the importance of not hindering the growth of successful businesses with new regulations, Afshin stated, "This issue was promptly discussed within the government, and the majority opposed Article 17. We advocate for maintaining the previous model, where the guilds themselves remain the licensing authority."

He stressed that the government does not intend to assume operational control in this area.

Afshin concluded by stating, "We now await the Parliament’s review of this matter. However, if no revisions are made, the government may need to consider alternative actions since the bill originates from the executive branch."

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