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With the start of the countdown to the implementation of tariff .. Between economic imperatives .. And fears of rising prices
28/05/2012 0:00
BAGHDAD - Haider Filaih spring
is getting darker vision that can never expect what shapers things after the application of tariff law which is scheduled to start with virtually the end of next month, which escalated the debate with the approach of that date, between the supporters of the resolution and shows a split in the views of most of the specialists and the same politicians are involved in economic affairs, the counting of many of those interviewed (morning) that the project does not promise to be an economic decision only and not the possibility of him because the reflected positively on the fiscal policy which is still suffering greatly as a result many of the dilemmas experienced by the Iraqi economy, while others were support for the decision which his enemy is necessary for the rehabilitation of aspects of the productivity of mission in the country and its ability to create a kind of industrial competitiveness between the imported product and his community.
The Ministry of Finance has made it clear through a statement made by ((the center of news for the Iraqi Media Network)) the absence of any intention to retreat from the implementation of the decision tariff, saying its implementation in the time scheduled for the end of this month, said the statement, quoting official media office of the Minister of Finance, the ministry is determined to apply the tariff law the end of next month and there is no intention to postpone it.
hand against the decision
and perhaps stopped nearly 90 percent of industrial projects government and private place many specialists in the confusion of the feasibility of implementing the decision, as such decisions is the umbrella legislative task to support the fact, industrial countries around the world and works to reduce the dumping of commodity to push local products into the arena stronger, however, that theory, according to specialists do not place in the country that does not produce a local in which like Iraq, suffering from paralysis almost entirely to its system of economic, and this will result to higher prices of materials as a result impose definitions of tariff higher and will be aggrieved then the consumer only in the words of those involved in economic affairs. the point with the decision , underscoring many of the involved in economic affairs that the customs tariff positive effect can appear in the medium and long term, and show that the imposition of financial ratios are high on certain items to be imported will pay the wheel of the private sector forward, and will be concluded after that to revive the sector and enable a way that allows him to enter the competition stronger than it is now with imported materials, but this approach is often collide with the reality shows stop nearly 90 percent of the industrial projects of public and private at the moment, which means that the timing of the decision came before activating the productive sectors that can provide part of the need the local market after the imposition of tariffs on imported goods. law is not intended to finance the budgets of the country and is an economist and adviser in the Prime Minister Dr. Abdul Hussein Al-Anbuge law as one of the leading systems that help to transform the economy from consumer to producer, in favor of this application of the law which he did not intended to finance the budgets of Iraq, which is not needed to the returns of financial but law aims to protect local product class basis of cases of dumping, which suffered during the past years. and see Anbuge the rise of some commodity prices and products in local markets, b (the desired target) because This rise in the values of imported goods, according to Anbuge will boost production to the manufacture of many materials, goods and will lead to consumer appetites for local products, which will reduce the cost for his importer. shows Anbuge that the law taking into account the exempted goods that have a direct contact to people's lives from the tariff customs or work on reduced significantly, as well as reducing rates of customs on the material that is one of the inputs to domestic production and involved in certain industries, where the mayors of law to waive or reduce the rate of customs. tax or tariff and explains a number of specialists the importance of the decision in the organization of life people's purchasing power, particularly since the tariff will be imposed figures extra will reflect on the consumer, but an economist and head of the Department of Economics at the University of Mustansiriya Dr. Qusay Al Jabri sees the importance of not considering this law, a part separate from the current reality of the Iraqi economy, which requires the building of strategic and integrated national economic reform and the need to count of this law is part of this strategy, calling for the need to be patient as the implementation of this law until the start effectively to make those reforms. , says Jabri too: it must be said that these financial ratios imposed by the government on imports is not a fee or tariff as we call it always, but is ((customs tax)). The difference between the fee and the tax is to tax a certain amount of money the government Jabra Tstadi of individuals, free of charge to achieve certain goals, for example, income tax, sales tax and profit tax ..... etc.. While the fee is the amount of money imposed by the government to the individual for a public service by the government of the individual while progressing to request this service, for example, the fees that you take the government from individuals when applying for the identity of civil status or Joazsafar or import license .... etc.. So what government-imposed on imports of money is not match a particular service provided by the government of the individual defended the fee, and is therefore not a fee but it is a tax as long as the imposition of this amount without service live interview. competition .. and lack of flexibility of the production machinery and indicates Jabri that some confirms that this law designed to protect national products, and that this fee would be in support of the local private sector and will reduce to some extent, the level of price competition with imported goods, at a time which is difficult to answer on those proposals in return, can be asked many of the observations that stand without achieving those goals, says Al Jabri, who pointed out that the first of these observations is that the workers most important and which impact on the private sector's role in the Iraqi economy are the acute shortage of electricity and security conditions unfavorable associated with corruption, as both factors impact on the climate Investment in Iraq and thus impact negatively on the level of investment possible in the Iraqi economy, whether local or foreign. explains Jabri into it and for the public sector, the problem of industrial production is mostly due to the inability of the sector to complete the rehabilitation of companies, and that a large proportion of industries would be futile of rehabilitation, and the proportion of the other suffering from sagging and aging in the devices and equipment, and the weakness of human capacity with twice the investment environment, which is preventing the entry of investors for the rehabilitation of those industries in the words of Al Jabri. extent of poverty and its relationship to the law and perhaps the observer can be groping for some economic consequences if the application of tariff law , where sure Experts a rise in prices after the application, as confirmed by Dr. Jabri, who surprised forget Iraqi legislator the possibility of the effects and consequences as they come up the fulfillment of customs tariffs on the poor and the poverty rate in Iraq stood at 23 percent and the poverty gap is 4.5 percent and the unemployment rate of nearly 15 percent . Jabri and corrects reference to the impact of taxation will be reflected in high rates of inflation in Iraq, regardless of the existence of exemptions on certain goods and reduced taxes on other commodities. He noted that the inflation rate in Iraq in 2008, and without the imposition of customs duties amounted to 12.7 percent and for the year 2009 amounted to 7 percent, and at the imposition of customs tax must be the rate of inflation to be far higher. the possibility of turning the law to the economic burden and stresses Jabri on the importance of the harmony of laws economic relations with some for the highest significant results, which if it says that it shows the wrong time to implement the tariff law, stressing the need that the law of customs duties and one of a package of measures constitute a national strategy for economic reform, saying that the enactment of this Act and without a policy of agrarian reform, and unresolved problems of industrial and public facilities of the industrial sector .. And without a radical solution to the problem of electricity and the rest of the infrastructure problems, without solving the problem of the unemployed, and without work to mitigate the problems of poverty ... All this will transform this law into a mere burden on the people in favor of glut greater balance-governmental organizations. law without the protection of the product .. danger to the economy and see the Economic Commission representative to activate the tariff law the end of next month amid the absence of legal protection of the product and the consumer will have a Tbaat dangerous for the Iraqi economy , calling for should not exceed the tariff to 20 percent. said committee member Nahida Daini's (Center news for the Iraqi Media Network) that "the tariff law should see the light in order that there will be revenues of the country but there must be laws by the state to protect the product and the consumer alike. " explained Dani, "The application of tariff will cause an economic crisis at the moment, especially in the case, such as those experienced by the economic reality of Iraq and the situation of inflation and high poverty rate due to increase pensions and not to amend the salaries of the state.", she said " There has to be controlled by the government and that the ratio of the customs tariff from 15 to 20 percent of the goods is not more. " She Daini that "the application of tariff law must be preceded by approval of a legal product protection and consumer protection the old laws, but it needs to activate, and the application of tariff law like this would cause an economic crisis. calls for the delay in turn, a student member of the Committee on the economy and investment representative Abdul Salam al-Maliki government to postpone the work tariff and to find alternatives for the protection of national industry and local communities, expressing fears that the result applied to the resort importers to introduce their goods to markets local cross-border points in the Kurdistan region, which will lead to the loss of other provinces benefiting from the funds they receive from the entry of goods across its outlets. Maliki said in a press statement, "The government needs time now to coordinate with the House of Representatives to pass laws to protect national industry and the postponement of work tariff until the alternatives necessary to protect local product without damaging or weights on the shoulders of the citizen. " Maliki said, that "the tariff, despite their importance for the protection of national industry to flood the market the product importer, but it will also raise the prices of goods, which will affect negatively on the living situation of citizen opinion private industry says the investor Aday Shammari owner of one factory specialized production of soft drinks: the imported materials have made us work to reduce the technical specification of the domestic product in order to reach the price equal to the Iraqi market, and pointed out that the production that comes through the neighboring countries is usually less expensive for domestic product for many reasons first of the high cost of production in Iraq due to increased wages (not calculated) Kajor energy that forced the owners of factories and plants to be provided, in particular, explaining that he had as an entrepreneur factory are forced to pay large amounts to meet with the purchase of fuel for the engines power and wages of other paid taxes and this According to Al Shammari is led to raise the costs of the domestic product compared to the importer, which was less expensive than. adds Shammari: So it is necessary to apply the law for the time being, but we Ksnaaaan dire need to turn the law to exempt raw materials used in industry of local rates of customs, and asked Shammari: What is the point of imposing the law of the tariff aimed at the ultimate support of reality production and industrial without a reduction in materials used in local industries, which works to clear the decision of the content of the most prominent is activation of the wheel of industrial production, demanding at the same time the government to activate all the decisions that will increase local production and activation of Iraq's industry, which he said has paralyzed almost entirely due to flooding the local market with many goods and imported materials, which confirmed that the specifications significantly lower than the local product which is characterized by industry is excellent and can be comparable to the importer. fear the project did not move away with the high prices of the imagination of many of observers of the scene of the economic after the imposition of tariff law, who stressed the need to be baptized the government to impose Guanyin internal down on cases of monopoly or impose prices how to by the importers, but the economist Ali Hilfi sees the need for the intervention by the State, represented by the Ministry of Commerce as a competitor in business operations , and indicates Hilfi that the economic system of Iraq and also noted the Constitution so it allows the state to enter as a competitor in business operations with the private sector, and use all their means to maintain price stability being primarily responsible for the issue of maintaining the stabilizing inflation. emphasizes Hilfi the importance that the government does the role of the central markets, cooperative societies and make it to the player based in the Iraqi economy during future periods, explaining that such enterprises are able in case its recovery again reduce the burden on many Iraqi families, especially the low income as well as it will create a form of equilibrium price between what is sold in local markets and what is displayed in the central markets of goods and merchandise.
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