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Economists nervous about rising commodity prices in local markets
20-03-2012 09:30 AM
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She said the Economic Commission representative that the activation of the law of customs tariff will provide revenue of financially additional to the state treasury could be invested in the revitalization of agricultural and industrial sectors, while Asher Economists futility of activating the law that will carry with it the negative, stressing that the protection of the Iraqi economy is not by increasing taxes.
The Ministry of Finance has decided to activate the customs tariff law in Iraq next June after postponing the implementation of the law to two consecutive terms.
The decision of the parliamentary economic committee, according to Mahma (Rn) and the Ministry of Commerce and Commercial Control monitors the local Astaqraralsouk even after the application of tariff law, stressing its support for the activation code which will provide additional financial revenue to the state treasury. '
Khelil said: There are four laws began in the previous parliamentary session which is the law of consumer protection and product protection of Iraq and prevent monopoly and tariff laws, and this is the full cycle of economic life.
In response to a fear of rising prices in the domestic market after the imposition of taxes on importers in accordance with the tariff law, he explained the Commission's decision to break the fear comes from the need to go the money collected from the application of law to the compensation fund for farmers, farmers and industrialists Iraqis in order to be revenue available supplies for their agricultural and industrial production.
Khalilzad said: There should be support of the domestic product and that the State shall distribute industrial and agricultural supplies in accordance with the regulations and at subsidized prices so that there is encouragement of the domestic product.
It was hoped to be activation of the Tariff Act in March last year after being passed by the Iraqi Council of Representatives. And cancels the new law tariff law issue by the civil governor Paul Bremer and the subject of all goods imported into the discount rate of 5% in taxes, while the new law discriminatory tariff starts from zero and up to 30%.
While counting the government and the parliamentary economic committee to activate the tariff law to stimulate the Iraqi economy over the rival goods imported Economists believe that the application of the law will reflect negatively on the economy and the citizen will bear the consequences.
The economist said Majid picture (Rn) The purpose of the imposition of customs duties is not known until now, If it is intended to provide resources to balance the question the other hand do we need this money the few and trivial compared with the financial possibilities of the enormous of Iraq?, And if the goal is to protect industry The local farm is not in this way is to provide protection for the Iraqi economy. He added that the picture of industry and agriculture protected by providing possibilities for its functioning and the most important electricity and exemption from taxes and labor restrictions, control and leave '.
He said the picture saying 'if the goal is to impose tariffs to protect the Iraqi economy will not be protected because it will lead to increased cost to the Iraqi consumer, tax is a fee indirectly are downloadable on importers and this is reflected in the Iraqi consumer and thus will lead to increased prices and the way they want say that the Iraqi industry requires high costs'.
He stressed that the picture on the industrial and agricultural development should not be at the expense of the citizen, but must be programmed with the provision of huge potential for the purpose of reducing the cost to producers.
The Law on Customs Tariff on the repeal of the tariff number (77) for the year 1955, and ordered the Coalition Provisional Authority (dissolved) No. (54) for the year 2004 (the policy of trade liberalization of 2004), and ordered the CPA No. 38 of 2003 (Tax reconstruction of Iraq and its amendments) , and stressed that the law does not work, or any instructions or regulations conflict with the provisions of this law.
Local retailers say that the government once the bridge carrying trucks from Syria, carrying goods as a result of the Arab summit has led to rising prices in the domestic market, wondering what will happen the government imposed a tax on importers?.
Hameed said the grave, the owner of the Karrada commercial market's (Rn) that traders this week raised the prices of all goods and the reason is the narrow entry of trucks into Iraq because of the actions of the Arab summit, and we fear that rising prices to levels unimaginable. '
The grave 'we heard the Iraqi government's decision on the application of tariff decision next June and we tell them will bear the responsibility of higher prices in the market, without a doubt will be located on the citizen and the shoulder, but everyone will be affected.
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