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Tariff protection between production and their effects on the family budget
10/06/2012 2:34
Controversy over the timing of
Baghdad - Haider al-Rubaie Filaih
as seen by a number of stakeholders in economic affairs tariff law necessary to the revitalization of the national industry, and activation of local production facilities in various forms, an economist warned that the application of the law is can lead to the collapse of many of the economic gains achieved in the past years thanks to the fiscal and monetary policies, pointing out that the imposition of fees on goods entering tax factor will lead to rising material prices in the domestic market and thereby increase the pressure on the shoulders of the citizen and then high rates of inflation, and while he believes the seriousness of the law is applied tariff at this time, pointed out that such laws are implemented to give effect to aspects of industrial production and said that does not exist in Iraq.
The government is seeking to implement a package of economic laws that can be very active fiscal policy in the country, is that the application of tariff law, according to many economists comes at a time commensurate with the development trends of the country, for arguing that such a law sponsor higher rates of turnout on purchasing local products and reducing the size of the purchase of imported goods, which irritated and surprising economic circles, which holds that the total Iraq produced locally does not exceed 5 percent of the volume of materials and imported goods.
stresses economists on the importance of resorting to the government and the country's economic policy makers to stimulate the production of industrial areas such as orientation to the imposition of customs duties on ÂáÓÚ and materials, and this matter was raised by economic researcher Hassan sponsor creates an atmosphere of competition between the price imported materials and manufactured locally, pointing to the fact that industrial in Iraq now refers to a large decrease compared to the size of the total imports of the country, and this is the point of intersection between the law of the tariff and time schedule for its implementation.
praised the good orientation of the government called for the need to wait to apply the law, is that good patient explained that the process does not mean stop Altiv, which shows that the Ministry of Finance continues to implement it in time for the end of June, pointing out that the question of organizing an extended meeting attended by many experts and specialists in the economic order is necessary to feed and mature decision with all the ideas involved in this matter, and to determine the main the contents of the pros and cons, and this could put away the economic reality of the price fluctuations that can affect the overall economic gains in Iraq.
Despite the size of the widespread criticism faced by the process of applying the law for the time being, but the industrialists and those involved in the Iraqi private sector praised the decision, but they demanded a legislation package of laws that can operate at revive aspects of productivity in the private sector, particularly the provision of financial support and loans to industrial and private sector Guanyin exempt from taxes and customs duties on raw materials used in the production of certain goods and materials.
and local industrialists to the tariff law imposing customs duties on goods and raw materials used in production, and this according to the resolution of industrial empties its content, which calls to revive the industrial reality in Iraq, calling for the revision of the law well and exempt raw materials, especially within the dairy industry and electrical items, clothes and some the food industry from customs duties in order to activate specialized Iraqi factories producing such substances, wondering about the usefulness of a resolution aimed at reviving the national industry and imposes customs duties on inputs to national production.
markets have seen a remarkable rise in prices in recent weeks, The reasons watchers attribute this to a state of frenzy in the domestic market and the fear among the wholesalers of the volume of procedures that can accompany the process of implementing the law, led the increase in demand is to raise the prices of other single remarkably, comes the increased demand, according to many citizens in anticipation of a big hikes in materials and imported goods if the application of the law.
and see the expert and head of the Department of Economics at the University of Mustansiriya Dr. Qusay Al Jabri said the customs duties were not discriminatory, as imposed on the All goods without taking into account the price elasticity demand (ie, the degree of response required quantity of goods to changes in the price), asserting that the imposition of customs duties on goods to be flexible as low as request price of basic food commodities will give the possibility of large to raise the price as long as the amount required in response to these changes in the price low.
He criticized what he called Gabri (forget the legislator) shapers results of applying the tariff law to the poor, adding that he will be the effects of rising prices and a tent on the poor, especially since 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. And
Al Jabri said that 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 items, indicating 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 that he would, according to these data. When a tax-tariff must be the rate of inflation is much higher than this.
stressing that the law of the customs duties should be one part of a group action a national strategy for economic reform, and that the enactment of this Act and without a policy of agrarian reform, and without solving the problems of public facilities and industrial manufacturing sector, and without a radical solution to the problem of electricity and the rest of the problems of infrastructure, and 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 the largest glut of government budget, according to Jabri.
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