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New customs tariff law and the protection of the local product
On: Sun 29/04/2012 7:30
Majid picture
| Part I |
once again going to speak about the law of customs tariff of the new will be applied according to the government's announcement from the end of next June this year, has been official statements of support for the issuance of this law and its application to highlight the positive aspects in their view, represented by the following:
1 - increase the revenues the state treasury.
2 - to protect local industry and support local production and promotion. Or as expressed in other words, that the law in line with the reform of the Iraqi economy.
3 - reduction of flood the market with inferior products.
that the concept of tax very old ages, but he grew up mainly clear and as a result of the exploitation of princes, feudal peasants in order to finance military campaigns to expand the pretext of defending human populations that are under their control. Thus, it is basically the concept of exploitative forced from the beginning. This concept is still used at least partially in the greatest of modern states. And World Wars I and II, but a shining example of that. Thus the case for war on Vietnam, Egypt, Afghanistan and Iraq. All these wars have been financed by taxpayers, regardless of the goals of this war, which is mainly re-distribution of spheres of influence of political and economic development.
certainly the concept of the tax over time has evolved to be considered an essential part of the financial policy of any state, and some sort of social contract in order to enable the State to carry out its duties towards its citizens basic, and a tool to redistribute income equitably, and all this applies to direct taxes in particular. As for indirect taxes, the purpose of the foundation is to increase the resources of the State, and re-distribution of income in favor of the rich, and this applies to the sales tax and customs duties. However, the customs duties can be used to protect domestic production in special cases and for certain goods at the time studied.
increase the revenues the state treasury
has reached the budget revenues from customs duties of border crossings in 2010 hit 421 billion dinars (about $ 350 million) is expected to rise, If you implement new customs duties, according to official statements, to any weakness to about $ 700 million. According to the 2012 budget estimates, it will not only constitute 0.7% of the estimated expenses of the budget. Knowing that oil revenues alone in 2011 amounted to $ 83 billion. And that the investment budget for the same year amounted to around 28 billion dollars, according to the latest figures published, the implementation of this budget did not exceed 50%, therefore, the surplus is about $ 14 billion. Even operating expenses are not incurred all, and if we add it amounts other revenues of the budget such as taxes, fees and other revenue, the size of the surplus money will be more than $ 20 billion. If you add a budget surpluses of the other 2004 to 2010 and estimated at more than $ 50 billion, it will be the total surplus of more than $ 70 billion. Certainly there is no final accounts for the integrated knowledge of the actual surpluses in the budgets of the Iraqi state and how to use them, if they exist, have not been announced, but the preliminary figures published in some official sources to confirm this. Do we need a revenue from customs duties? In addition, the money will go where that will be obtained as a result of increased production and export of oil and according to plan and contracts that were signed, which is expected to reach 12 million barrels / day? And if the government need such trivial amounts that may be obtained from customs duties, so why not stop wasteful to spend money on the occasion and inappropriate? Why not be the fight against financial corruption that caused the loss of billions of dollars without an account? There are lots and lots of (Ammat). After all this, Do we need to customs duties to finance the budget? Do we need in general to impose a direct tax or indirect? Why do not we take into account the examples of organisms from countries other oil which relieve the employee of the direct tax and impose duties on imports from outside the region do not exceed 5%, as is the case in the Gulf Arab neighbor to us.
protect the local industry and support the local production
that the imposition of customs duties will certainly increase the prices of imported consumer goods, an increase drawing Alkmarki or more, and this depends on the behavioral lobby business, and this will lead to the possibility of increasing prices of goods produced locally (if the availability of this production) in order to cover the high costs of domestic production, or to increase the profits of the domestic product . In any case, it will be at the expense of consumers, especially low-income, and community groups that need special care Kalshyuh, children and people with special needs and retirees. There are many factors that lead to poor domestic production and minimize, to the absence in many cases, and not being able to compete with imported goods. Let's start with climate-production and production costs. Is there a climate productive in Iraq?
I have been productive base in Iraq to the major damage came in often to the complete destruction of some production facilities in different areas, industry, agriculture, services, tourism, housing, due to wars, economic blockade and the senses, and the non-application of a conscious policy to get rid of these effects and the development of what is left of it. This has included the destruction of all the elements of production, land, labor and capital, and was breaking the traditions of work and non-compliance with its requirements. Will put the successive Iraqi governments, including the occupation government, policies and a clear, transparent and targeted to achieve the targeted results in economic development, social, cultural, scientific, and the promotion and development of local production and protect? The Ministry of Planning (written and underline), two plans for economic and social development in Iraq, regardless of the compatibility with the content of these plans, but it has not been implemented despite the interest approved by the Council of Ministers. Among what Ahtute these plans to resolve the problem of electricity and reducing unemployment and poverty and increase agricultural and industrial production.
have the text of the investment law is currently applied to exemptions from direct taxes and indirect for long periods of 10 years, and can be extended stroke of a pen, and the decision of an individual for a period of 15 years, so why not These procedures apply to domestic production, which will be based, or by the producers of the Iraqis. The protection of domestic production if there were serious in achieving this protection, you must first secure the existence of this production and then do the studies of how to adequately protect the goods produced. There are lots and lots of requirements that must be secured in order to ensure the development of local production, including:
1 - secure the necessary infrastructure for production, and most important electricity, water, transportation and communications, which is almost missing, despite the large sums that were spent.
2 - to facilitate the secure transfer of modern technology to production sectors different.
3 - granting exemptions occasion of direct taxes and indirect and other facilities, especially in the current transitional phase through which Iraq.
4 - to secure access to capital more easily.
5 - Development of the labor market to meet the requests for production units existing and new.
6 - find appropriate solutions to the problem of surplus labor in the institutions of the public sector productivity, which is considered one of the main factors in increasing the cost and the inability to compete.
7 - improving the working and living conditions in rural areas in order to reduce immigration to the city and encourage emigration.
There are lots and lots to be done In order to encourage domestic production and protection with an emphasis on all those who would improve quality and reduce the cost comparison. That the increase in prices resulting from the imposition of new customs tariff would certainly contain the part of the high cost of domestic production currently located, but the effect will not be a radical, and will be at the expense of the citizen and its purchasing power.
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