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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared U.S., British embassies in Yemen close on Qaeda threat 10:10am EST Iraq to support Blackwater lawsuit in U.S. courts 10:20am EST December retail sales seen up, tough spring ahead 8:13am EST Obama aide says al Qaeda may plan Yemen attack 8:36am EST BAA to introduce full-body scanners at UK's Heathrow 9:29am EST Hundreds of cars torched in France at New Year 01 Jan 2010 Pope urges lifestyle changes to save environment | Video 01 Jan 2010 Heavy snow brings Beijing to standstill 8:28am EST Man opts for jail over New Year with relatives 01 Jan 2010 Tweets, sexting "unfriended" in U.S. banned word list 31 Dec 2009 Iran MPs reject call for subsidy bill withdrawal Reza Derakhshi TEHRAN Sun Jan 3, 2010 5:13am EST Related News Late cleric's son warns of more Iran turmoil: report Sat, Jan 2 2010 Opposition head Mousavi: Iran in "serious crisis" Fri, Jan 1 2010 Iranian authorities vow "no mercy" to opponents Thu, Dec 31 2009 Iran opposition clashes with police Mon, Dec 7 2009 Iran says over 100 people detained at anti-U.S. rally Sat, Nov 7 2009 TEHRAN (Reuters) - Iran's parliament rejected on Sunday the government's request to withdraw a bill aimed at gradually cutting energy and food subsidies, state radio said. World President Mahmoud Ahmadinejad and parliament disagree over control of the money saved through the reform. The government wants to spend the money in any area it sees fit. But the assembly passed an amendment in November linking the proposed cut in subsidies to the budget and forced the government to put the money into a special account for public spending. "The government requests the withdrawal of the subsidy reform bill," the government said in a letter to the assembly, the official IRNA news agency reported. Ahmadinejad had previously threatened to kill the plan. But parliament sent the bill to the Guardian Council, a legislative watchdog body, for final approval to become a law. Ahmadinejad, who still faces opposition protests six months after his re-election in June, wants to save up to $100 billion annually from subsidies on gasoline, natural gas, electricity, water, food, health and education. Removing subsidies would ease a heavy budget burden and make Iran, a major oil producer, less vulnerable to any new U.N. sanctions on imports over Tehran's disputed nuclear energy program. Critics believe the government's subsidy reform plan will hurt many ordinary Iranian people already struggling to cope with rising consumer prices. The official inflation rate stands around 15 percent. "SERIOUS DEMAND" MPs said they "seriously wanted the bill to be implemented." "The withdrawal of the bill is unacceptable for MPs ... parliament has done a thorough technical examination before passing the bill," said conservative lawmaker Ahmad Tavakoli, a critic of Ahmadinejad's economic policy. State media have said the government will open bank accounts for 36 million people, about half the population, to give them cash to compensate for the higher food and energy prices. The country has been rocked by anti-government protests since the June vote, which the opposition says was rigged to give Ahmadinejad a second term. The vote touched off the worst internal crisis in the Islamic Republic's 30-year history. The government denied any fraud in the voting. Iran, which may face tougher international sanctions in 2010, has set a one-month deadline for six powers to accept its uranium swap proposal. (Writing by Parisa Hafezi; Editing by Angus MacSwan) World More from Reuters Pictures of the Decade Pictures OUTLOOK 2010: Rate hike in the new year? Wall Street's raging bulls may be getting ahead of themselves. Full Article Macro hedge funds tipped for 2010 The coming Great Inflation U.S. Markets Pictures of the Year A woman guarding her children amid an attack near the Gaza Strip is among the indelible Reuters images of the year. 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