Government efforts to impose new taxes and warnings of high recession rates

Government efforts to impose new taxes and warnings of high recession rates



Iraqi currency
 
26/02/2018

Economy News Baghdad

New taxes awaiting Iraqis after the passage of the draft law of the budget of 2018 is to impose sales of 10% on commercial centers and services provided in hotels and salons for men and women.

The government believes that the imposition of sales taxes is applied in the countries of the world and does not affect the citizens, which is part of the tax policy that Iraq started to work on.

In an interview with "Economy News," the spokesman for the Prime Minister's Office, Saad al-Hadithi, said that "the imposition of sales taxes is a paragraph within the draft federal budget for 2018, which has not yet been approved.

Al-Hadithi told "Economy News" that taxes are part of all the tax policies in force in the world and is not new for Iraq .

He stressed that "sales tax will not affect the owners of malls or large malls because they are making a good profit," noting that "economic policy is the decisions that are not external forces."

On the other hand, the Finance Committee stressed the importance of the abolition of the article on the imposition of taxes on malls, shopping malls and barbershop men, of the budget bill for 2018 .

A member of the Committee, Jabbar Abadi, in an interview with "Economy News", it is wrong to impose taxes within the draft federal budget law because it will end after the end of the year .

"It is assumed that there are computers for the electronic account to know the amount of money sold by shops and on which basis to calculate the tax ."

He stressed that "the need to address informal shops uncontrolled and compete with the owners of regular shops," noting that the law on taxes on malls, shopping malls and barbershops need to be re-examined and evaluated in order to correctly recognize .

The economist, Abdul Rahman al-Mashhadani, agrees with the statement of the member of the Parliamentary Economics Committee, while commenting on the deletion of the tax articles from the federal budget bill for 2018, saying: "The federal budget law should not contain tax materials imposed on mobile phones and the Internet because the budget law Variable with each end of the year must be a special tax law . "

Mashhadani pointed out that the environment is not suitable to legislate the tax law for two reasons. The first concerns the status of the financial government, which witnessed growth in previous months compared to previous years, especially as Iraq emerged from a war that is not easy to drain its money .

He added that "the second reason relates to the suffering of citizens from financial distress because their economic activity is limited to their monthly salaries, while the rest of the activities are stalled ."

The economic expert warned that the implementation of the law will lead to a high rate of recession in the country, noting that "the recession leads to raise the unemployment rate ."

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