New fees up to 200% .. Warnings of a wave of high cost will be seen in Iraq

The federal government insists on increasing taxes despite the fact that Iraq lacks factories to meet its domestic needs. After imposing taxes that analysts described as unfair in the 2018 budget, it has imposed a tariff on nine consumer goods that will pay the Iraqi citizen, Which impose taxes to achieve a number of objectives,

the most important of which is the protection of local products from foreign competition, expansion of domestic production and export development, the creation of financial resources for the public budget to cover government expenditures, as well as controlling the volume of imports.

Economic and financial corruption rampant in all parts of the state has deprived Iraq from benefiting from this important resource, but became a major problem for the Iraqi economy, and rock burdens of the citizen, while the money is still spent on the allocations and allowances and the effects of the deputies and ministers and senior degrees.

According to economists, the new government approach to the imposition of taxes, comes in accordance with the demands of the International Monetary Fund, in an attempt to obtain the value of 13 trillion dinars of taxes and fees.

The new tax program to be implemented from 5/8/2018 to four years:
A 20% tariff on the imported men's suit product, 30% minor white garment producers, clear utensils for dishes and dishes, as well as 50% for all chicken products and frozen meat, as well as 26% for box stations.

The cream products, the Newcastle vaccine, plague, small ruminants , PPR imposed an additional fee of custom 100%, and 27% for producers Block Althermiston, and LANSOPRAZOL 15MGTABLET Vdilaan 200% product textbook primary and secondary stages, and 85% of the product chips natural potatoes imported into Iraq.

The Committee on Economy and Investment described recent economic measures as "ill-considered". "The decision to impose new taxes and duties will be paid by the poor citizen and will not benefit the people at any time," said Ahmed Kanani, head of the Economic and Investment Committee.

"This decision will lift the economy of his country and increase competition in the country. Local market".
"It was better for the government to prevent the importation of these materials in a move to encourage local production, not to impose taxes that would weigh on the citizen," he said. Hoping that the government would make a deliberate decision in the future.

"The decision to impose taxes on consumer goods needs to be reconsidered," he said.
He notes that: "Iraq's response to what the International Monetary Fund demands is a clear indication of the weakness of the state, and the federal government should have a view on taxation, especially as this measure will affect the income of the poor citizen and will cause a lot of problems.

A harbinger of a huge wave of price"The budget of 2018 came in a decision to impose taxes," economic expert Salam Samisem told The News News, in a move to bridge the fiscal deficit suffered by the budget through taxes and fees levied by the federal government from citizens, but these taxes will lead to waves Big inflation in the Iraqi economy, which would raise prices, and reduce the real value of citizens' income.

"The country is experiencing an economic crisis that has negatively affected the lives of citizens and raised the poverty and unemployment rates. Taxation will only hurt the middle and poor classes, as it will be difficult for them to meet their income requirements in line with rising market demands," she said.

"The absence of factories to meet these commodities domestically will lead to a large gap in the Iraqi economy, as well as a huge surge in goods in the market, and it was better for the federal government to provide infrastructure for Iraqi industry that would meet the needs of citizens, And it has the advantage of cheap prices and thus will promote domestic production again.

"Justifying taxation by the government is not logical," he said. "The fact that taxes were imposed is in line with its agreement with the International Monetary Fund, which stipulates the need to diversify state resources, the first of which is taxation.

" And notes that the citizen will include direct taxes on income, and indirect taxes imposed on goods.
"There is a difference between fees and taxes.

Taxes are imposed for no fee or any service, but the fees are for service, but the state should deal with the citizens in a broader sense, but unfortunately we suffer from the lack of economic governance and lack of transparency, Financial institutions in the interest of citizens.

Earlier, the financial advisor to the prime minister, Dr. Mazhar Mohammed Saleh, justified the government's use of the tax option to diversify the economy and end oil-dependent rents.

Saleh said that "Iraq occupies the last place in the world by paying taxes, as it does not correspond to 3% of GDP because the culture of tax payment is weak and strange to the Iraqi people," noting that "the payment of taxes a national mandate to contribute to everyone to provide the budget funds, Funds go to projects seen by a particular citizen such as the establishment of hospitals, streets and others.

The taxes included in the budget of 2018 include: 15% on the import of cars and the same on restaurants and hotels, 20% on telephone lines and the Internet, 10% on goods traded in malls and large markets, fuel tax 10%, 12% real estate tax and others on cigarettes, Sugary drinks, road and bridge maintenance tax, and water and electricity fees.

It is noteworthy that the government is facing significant limitations in the collection of taxes from its departments, as the government admitted to waste more than $ 8 billion in one year of customs duties on the import of goods.