A board member of Iran’s Virtual Business Association announced that the annual turnover of Iran’s VPN and proxy market is around $500 million, which is one of the reasons internet censorship remains in place in the country.
On Monday, September 8, Pashootan Pourpezeshk told the state-run website Eghtesad120 that estimates suggest the VPN market in Iran generates between 30 to 50 trillion tomans (approximately $300–500 million) annually.
He explained that given the volume of Instagram-based commerce, these figures are not unrealistic, adding that such economic dimensions are one of the main reasons why numerous obstacles exist against lifting internet censorship in Iran.
On June 3, the state-run daily Shargh reported, citing unofficial estimates and independent research centers, that the VPN and proxy market in Iran is worth between 30 to 60 trillion tomans ($300–600 million) annually.
The report emphasized that these numbers have sharply increased in the years following the widespread blocking of platforms such as Instagram, WhatsApp, Telegram, and YouTube.
Tax collection from Instagram bloggers despite the ban
In another part of his interview with Eghtesad120, Pourpezeshk said that since September 2022, censorship in Iran has intensified and access for many businesses has become restricted.
According to him, more than 700,000 online shops are active on Instagram in Iran, and the market value of goods and services traded on the platform is estimated at 75 to 85 trillion tomans (approximately $750–850 million) annually.
The board member highlighted contradictions in Iran’s tax policies, noting that although Instagram is blocked, the Tax Administration imposes taxes on content creators and sellers on the platform based on their number of followers and banking transactions.
He added that while their income is officially recognized for taxation, when it comes to losses and restricted access, they receive no support.
Earlier, on September 7, Behzad Akbari, head of Iran’s Telecommunications Infrastructure Company, stated that around 80% of internet users in Iran use VPNs and 70% of the country’s internet traffic runs through them.
This situation persists even though lifting censorship was one of the campaign promises of Iranian regime president Masoud Pezeshkian. However, after winning the election, his officials urged citizens to be patient regarding this pledge.
For more than two decades, the Iranian regime’s restrictive internet policies have limited free access, forcing many users to rely on VPNs and proxies to access blocked websites and social media platforms.
The widespread use of such software is one of the main reasons behind the declining quality and slow speed of internet in Iran.
At the same time, reports have surfaced that certain companies and individuals close to the regime are profiting from the VPN market.
