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What awaits the Iraqi economy after implementing the tax base?
August 23, 2024
Baghdad/Iraq Observer
Oil stocks are currently witnessing a decline as a result of the strong demand for fuel during the peak summer driving season in global markets, but they may stabilize in the last quarter of this year, while
Prime Minister Muhammad Shiaa Al-Sudani directed:
“Studying what has been implemented within the framework of expanding the tax base, and including activities Economic in the style of self-esteem.
At the forefront of this directive is the implementation of tax reform, one of the means of developing economic performance and increasing the state’s financial resources.”
The guidance includes a review of what has been accomplished in accordance with the packages of relevant Cabinet decisions, or the steps undertaken by the Supreme Committee.”
Among this guidance is the preparation of a draft amendment to the Real Estate Ownership Transfer Tax Law.”
The Iraqi economy suffers from a constant state of instability due to the fluctuation of oil prices on global stock exchanges, the Russian-Ukrainian war, as well as the Gaza war, and the American election campaigns, according to experts.” Experts believe:
“Iraq will diversify sources of income after its economy sensed danger and fear of a decline in global oil prices.”
Iraq depends on oil for its economy, which constitutes a large percentage according to the tables of official institutions, which is called the rentier economy.
Rich classes
In turn, economic expert Osama Al-Tamimi said:
The tax reform policy is one of the means of developing economic performance and increasing the state’s financial resources, but
it must be according to standards that take into account the economic level of citizens, like what is done in developed countries, away from niceties, to provide more support to the weak segments of society. Al-Tamimi stated to the Iraq Observer,
“The increase in taxes must include the rich classes in which a greater proportion of the money is concentrated and their practice of economic activities, while
at the same time some of them are trying to evade the taxes due to the state or are looking for exceptions to not pay them, while the focus is on the rest of the weak citizens.” To pay their tax dues without considering their social reality. He explained that
developing tax performance requires the state to stimulate the various economic sectors, agriculture, industry, tourism and other economic activities by
providing the necessary support and facilities to establish various activities,
develop export systems to achieve more revenues,
subject all outlets to state control, and
fight corruption of all kinds in the tax sector. He pointed out that
taxes are a tool for increasing financial revenues and enhancing non-oil revenues, which are very important for reducing the deficit and avoiding debt on the one hand, and also a tool for directing the economy towards economic diversification in the long term to
strengthen the economy,
absorb social problems, and
achieve political stability on the other hand.
Tax reform
Yesterday, Prime Minister Muhammad Shiaa Al-Sudani chaired the meeting of the Supreme Committee to follow up on the implementation of tax reform. A statement stated:
“During the meeting,
what had been accomplished in accordance with the packages of relevant Cabinet decisions, or the
steps undertaken by the Supreme Committee, and the
most prominent digital indicators were reviewed, including an
increase in tax revenues by (22%) for the current year until the beginning of August.” This year, for the same period last year, after the government took a number of reform measures that contributed to increasing growth indicators and its sustainability. Al-Sudani stressed that
“the economic reform pursued by the government within its programme, understood the importance of carrying out tax reform as a strategic option, within a comprehensive development vision for the non-oil economy, and for managing the state’s public funds and resources,” indicating that
“it is wrong to consider it an outlet that the government resorts to whenever it is in trouble.” Oil prices, or the oil economy’s returns declined.” The statement continued,
Tax base
“The meeting also discussed what was implemented within the framework of expanding the tax base, and including economic activities in the manner of self-assessment, and within exemptions approved by Cabinet decisions.
It also discussed the implementation of steps to address the problems of taxpayers, and the accounting of private banks.”
The meeting also presented to the Sudanese the efforts to prepare a draft of a new income tax law in Iraq with the German Cooperation Organization (GIZ), and by
adopting international standards that are
friendly to the business environment and
supportive of the private sector, in order to
achieve tax justice, as well as the steps to
prepare a draft of a new law for sales tax in Iraq, and
prepare a draft An amendment to the real estate ownership transfer tax law, in addition to what has been accomplished in the field of
tax accounting for extractive oil companies within licensing rounds, and establishing a mechanism to collect income tax from their activities.”
[You must be registered and logged in to see this link.]
August 23, 2024
Baghdad/Iraq Observer
Oil stocks are currently witnessing a decline as a result of the strong demand for fuel during the peak summer driving season in global markets, but they may stabilize in the last quarter of this year, while
Prime Minister Muhammad Shiaa Al-Sudani directed:
“Studying what has been implemented within the framework of expanding the tax base, and including activities Economic in the style of self-esteem.
At the forefront of this directive is the implementation of tax reform, one of the means of developing economic performance and increasing the state’s financial resources.”
The guidance includes a review of what has been accomplished in accordance with the packages of relevant Cabinet decisions, or the steps undertaken by the Supreme Committee.”
Among this guidance is the preparation of a draft amendment to the Real Estate Ownership Transfer Tax Law.”
The Iraqi economy suffers from a constant state of instability due to the fluctuation of oil prices on global stock exchanges, the Russian-Ukrainian war, as well as the Gaza war, and the American election campaigns, according to experts.” Experts believe:
“Iraq will diversify sources of income after its economy sensed danger and fear of a decline in global oil prices.”
Iraq depends on oil for its economy, which constitutes a large percentage according to the tables of official institutions, which is called the rentier economy.
Rich classes
In turn, economic expert Osama Al-Tamimi said:
The tax reform policy is one of the means of developing economic performance and increasing the state’s financial resources, but
it must be according to standards that take into account the economic level of citizens, like what is done in developed countries, away from niceties, to provide more support to the weak segments of society. Al-Tamimi stated to the Iraq Observer,
“The increase in taxes must include the rich classes in which a greater proportion of the money is concentrated and their practice of economic activities, while
at the same time some of them are trying to evade the taxes due to the state or are looking for exceptions to not pay them, while the focus is on the rest of the weak citizens.” To pay their tax dues without considering their social reality. He explained that
developing tax performance requires the state to stimulate the various economic sectors, agriculture, industry, tourism and other economic activities by
providing the necessary support and facilities to establish various activities,
develop export systems to achieve more revenues,
subject all outlets to state control, and
fight corruption of all kinds in the tax sector. He pointed out that
taxes are a tool for increasing financial revenues and enhancing non-oil revenues, which are very important for reducing the deficit and avoiding debt on the one hand, and also a tool for directing the economy towards economic diversification in the long term to
strengthen the economy,
absorb social problems, and
achieve political stability on the other hand.
Tax reform
Yesterday, Prime Minister Muhammad Shiaa Al-Sudani chaired the meeting of the Supreme Committee to follow up on the implementation of tax reform. A statement stated:
“During the meeting,
what had been accomplished in accordance with the packages of relevant Cabinet decisions, or the
steps undertaken by the Supreme Committee, and the
most prominent digital indicators were reviewed, including an
increase in tax revenues by (22%) for the current year until the beginning of August.” This year, for the same period last year, after the government took a number of reform measures that contributed to increasing growth indicators and its sustainability. Al-Sudani stressed that
“the economic reform pursued by the government within its programme, understood the importance of carrying out tax reform as a strategic option, within a comprehensive development vision for the non-oil economy, and for managing the state’s public funds and resources,” indicating that
“it is wrong to consider it an outlet that the government resorts to whenever it is in trouble.” Oil prices, or the oil economy’s returns declined.” The statement continued,
Tax base
“The meeting also discussed what was implemented within the framework of expanding the tax base, and including economic activities in the manner of self-assessment, and within exemptions approved by Cabinet decisions.
It also discussed the implementation of steps to address the problems of taxpayers, and the accounting of private banks.”
The meeting also presented to the Sudanese the efforts to prepare a draft of a new income tax law in Iraq with the German Cooperation Organization (GIZ), and by
adopting international standards that are
friendly to the business environment and
supportive of the private sector, in order to
achieve tax justice, as well as the steps to
prepare a draft of a new law for sales tax in Iraq, and
prepare a draft An amendment to the real estate ownership transfer tax law, in addition to what has been accomplished in the field of
tax accounting for extractive oil companies within licensing rounds, and establishing a mechanism to collect income tax from their activities.”
[You must be registered and logged in to see this link.]
