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Iraq’s non-oil revenues expected to grow in 2025
Iraq October 17, 2024
Part of the Iraqi capital, Baghdad. Photo: AP
Baghdad (IraqiNews.com) – Iraq is concentrating on boosting non-oil earnings through improved tax collection methods without enacting new fees in an effort to strengthen its finances.
Due to the country’s heavy reliance on oil exports, Iraq’s economy is vulnerable to changes in the price of the commodity globally.
The budget for 2024, for example, is predicated on an oil price of $70 per barrel, which is less than earlier estimates and reflects the continued uncertainty of the oil market.
The Prime Minister’s finance advisor, Mazhar Saleh, has stated that although 2024 may be steady, tighter budgetary control would be necessary for 2025 because of anticipated income deficits.
Forecasts indicate that non-oil income will rise significantly.
According to projections made by the Iraqi Parliamentary Finance Committee, non-oil earnings might be as high as $22 billion by 2025.
This is a noteworthy attempt to diversify sources of income in the face of falling oil prices.
At the moment, non-oil revenue is only thought to make up between seven and nine percent of the government’s overall revenue.
In order to tackle the projected financial constraints in 2025, Iraq intends to use better measures for tax collection with the objective of boosting non-oil revenues.
The step is expected to help Iraq recover an estimated $10 billion lost each year as a result of tax evasion and customs problems.
Given that public sector wages and infrastructure projects make up a sizable share of spending, the government may need to reevaluate its budgetary allocations.
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Iraq October 17, 2024
Part of the Iraqi capital, Baghdad. Photo: AP
Baghdad (IraqiNews.com) – Iraq is concentrating on boosting non-oil earnings through improved tax collection methods without enacting new fees in an effort to strengthen its finances.
Due to the country’s heavy reliance on oil exports, Iraq’s economy is vulnerable to changes in the price of the commodity globally.
The budget for 2024, for example, is predicated on an oil price of $70 per barrel, which is less than earlier estimates and reflects the continued uncertainty of the oil market.
The Prime Minister’s finance advisor, Mazhar Saleh, has stated that although 2024 may be steady, tighter budgetary control would be necessary for 2025 because of anticipated income deficits.
Forecasts indicate that non-oil income will rise significantly.
According to projections made by the Iraqi Parliamentary Finance Committee, non-oil earnings might be as high as $22 billion by 2025.
This is a noteworthy attempt to diversify sources of income in the face of falling oil prices.
At the moment, non-oil revenue is only thought to make up between seven and nine percent of the government’s overall revenue.
In order to tackle the projected financial constraints in 2025, Iraq intends to use better measures for tax collection with the objective of boosting non-oil revenues.
The step is expected to help Iraq recover an estimated $10 billion lost each year as a result of tax evasion and customs problems.
Given that public sector wages and infrastructure projects make up a sizable share of spending, the government may need to reevaluate its budgetary allocations.
[You must be registered and logged in to see this link.]
