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Prices of cigarettes and alcohol are expected to rise after the application of the "tariff" and experts are concerned

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Prices of cigarettes and alcohol are expected to rise after the application of the "tariff" and experts are concerned

1/1/2014 | (Voice of Iraq)


Long-Presse / Baghdad confirmed the General Administration of Customs of Iraq, on Wednesday, they drew the border crossing points all the implementation of the tariff law, while showed the Ministry of Planning intention issuing a list of about 106 goods covered by the tariff has been prepared in coordination with the Ministries of Finance and Commerce, accused the committee of economy and investment representative, (mafias) pressure to postpone the application of the law, and ruled that the result applied to higher prices in the local market, but economists have expressed "dissatisfaction" about the application of law in the country "lacks for local production and suffers from corruption." said Director General of the General Administration of Customs, and the twinkle Khaled Hamad, In an interview (range Press), "The Commission directed its outlets land, sea and air to the implementation of the cabinet decision on implementation of the tariff law, and discussed with the Ministry of Finance and the Iraqi ports possibility of systems installed to scan containers and goods entering Iraq," attributing the "delayed action law tariff for several times to the absence of mechanisms for its implementation and the high prices of goods in the Iraqi market. " He was Minister of Planning and Altaan Development Previously, Ali Shukri, had announced in (the tenth of December 2013), the decision of the Council of Ministers the introduction of tariffs on articles of luxury only as of today The second of the year 2014, adding that the tariff include the imposition of a fee of five percent or more of the prices of those materials, and 80 percent of the prices of alcoholic beverages. also announced that the Ministry of Finance, in (the thirtieth of December 2013), the imposition of tariffs on imported goods ranging from Thursday (second from January 2014 present), by no more than 20% of their value, indicating that the fees will be imposed at border crossing points all, including those in the Kurdistan region. his part, said a spokesman for the Ministry of Planning, Abdul Zahra al-Hindawi, in talk to the (long-Presse), "The ministry will issue a list of about 106 goods covered by the tariff, starting from (the second of January 2014 present), have been prepared in coordination with the Ministries of Finance and Commerce", noting that "the goods list covered included cigarettes and alcoholic beverages and electrical appliances. " added Abdul-Zahra, "The food and construction, clothing and everything enters in local industries and agricultural materials and any material relating to the lives of citizens are excluded from the tariff," noting that the "decision is to support the local product, protect and reduce the import of shoddy goods with the operation of national industries for the operation of the unemployed. " to the Commission considered the economy and investment representative, that there are organized gangs (mafias) pushing to postpone the application of the law, despite its importance in the regulation of trade and the protection of the local product, unlikely to lead its application to high prices in the domestic market. committee member said, Mahma Khalil, in an interview to the (long-Presse), if there is a "mafia of traders are putting pressure on the government for not activating the tariff law," noting that "the application of the law was delayed more than once, until it was confirmed that recently." promised Khalil, "The tariff law is particularly important and not activated at about serious leads to an imbalance in the economy of the country, for his big role in the organization of trade and import and export operations, as is the case in the countries of the world ", ruling that" the application of law to the rise in commodity prices, because traders will not be able so without being subject to a particular law. " Meanwhile, student economists responsible parties to abolish tariffs on goods, arguing that it could lead to "higher prices, which affect the citizens," and because Iraq is "a rich riches and does not need to tax revenues or Customs. " said economic expert, Salem Mohammed Aboud al-Bayati, said in an interview to (my father Press), "The system of tariffs is one of the general rules to regulate the country's economy, but it should be is consistent with the nature of the goods entering the local market needs it, and the size and type of production the local and the impact of imported goods on the local product and protect it and prevent dumping and monopoly, "returned to" apply the tariffs to the extent that is required as a principle in public finance, but it needs to be rules and consistent with local production and the need of the country at home and imported goods. " explained Al-Bayati, that such a "system can not be applied in a country where there is no local production, and trade did not care for the citizen, as well as the spread of corruption, and rising prices, which impact on the purchasing power of the citizen," pointing out that "the application of the tariff could cause Bachkalaat of the Iraqi economy." Either affairs specialist customs and teaching in the Faculty of Management and Economics at the University of Baghdad, Saleh al-Khalidi, he saw in an interview to the (long-Presse), that "the law was prepared in haste and without that based on the economic analysis detailed determine the level of protection required for each item separately in light compared to the costs of production and commodity prices of domestic and foreign competition in the domestic market, " said Khalidi, if they "want the protection to be effective and serve the purpose protective, it should be the extent and level that eliminates the price difference between the two commodities of domestic and foreign so as not to be imported favorite in terms of the price on the local , "he continued," that is, the proportion of customs duty enough to cover the cost of producing Item local and able to discharge the national production and make a profit, and this is what is known as the Made to Measure tariff, in the sense that the drawing detailed as much need Item local protection. " For his part, proposed a financial expert, Majid picture, in an interview to the (long-Presse), that "there would be a step alternative to the law is to issue import licenses to traders Iraqis to organize the business process, and prevent the entry of shoddy goods not conforming to international standards," adding that "the issuance of such licenses will facilitate the work of the Ministry of Planning, Trade and body General Customs, in the knowledge of Petroleum Exporting Countries and the amount of imported materials and quality, as well as help prevent the entry of inferior goods because it obliges the trader to import goods subject to international standards. " It is noteworthy that the former House passed the Tariff Act of 2010, and was the most prominent justifications issued put tariffs in line with the reform of the Iraqi economy and the amendments of the many that have occurred in the law. law provides for the imposition of customs duties on imported goods not included in the table of tariffs tariffs, by no more than 20% of their value, while exempt samples and models that are not of commercial value from customs duties , also took into account the law in applying the provisions of the facilities afforded by the Investment Law No. 13 of 2006, as amended on imported goods for the purposes of investment projects exclusively, so come in order to attract the maximum amount of the investment companies and businessmen to work in Iraq. Iraq had imposed tariffs on goods according to law 77 of 1955, before it stops with the entry of U.S. troops in 2003, to issue a civil governor in Iraq, Paul Bremer, a fee of five percent on the value of goods entering Iraq, I knew then charges the reconstruction of Iraq.

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