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

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



(Voice of Iraq) Long-Presse / Baghdad

The General Administration of Customs of Iraq confirmed, on Wednesday,all the border crossing points drew 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, the committee of economy and investment representative accused, (mafias) by trying to postpone the application of the law, ruled that its application leads 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.”
The Director General of the General Administration of Customs, Khaled Hamad, said in an interview to the (long-Presse), “The Commission directed its outlets land, sea and air to the implementation of the cabinet decision on implementation of the tariff law, discussed with the Ministry of Finance and the Iraqi ports possibility of systems installed to scan containers and goods entering Iraq, “attributing the” delayed tariff law several times to the absence of mechanisms for its implementation and the high prices of goods in the Iraqi market. ”

The Minister of Planning and 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 the beginning of the second day of the year 2014, adding that the tariff include the imposition of a fee of five percent More than the prices of those materials, and 80 percent of the prices of alcoholic beverages.

It also announced that the Ministry of Finance, in (the thirtieth of December 2013), the imposition of tariffs on imported goods starting from tomorrow, Thursday (second from January 2014 present), by no more than 20% of their value, indicating that the fees will be imposed in border crossing points, including all those in the Kurdistan region.

For his part, said a spokesman for the Ministry of Planning, Abdul Zahra al-Hindawi, said in an interview 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 list of goods covered by the guarantee of cigarettes and alcoholic beverages and electrical appliances. ”

Abdul-Zahra said, ” 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 the National Industries for the operation of the unemployed “.
The economy and investment Committee representative considered, 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, ruled that the application leads to higher prices in the domestic market.
A member of the Committee, 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.”
Khalil promised, “The tariff law is particularly important and not activated leads to an imbalance in the economy of the country, for is 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 to so without being subject to a particular law. ”
Meanwhile, economists bodies responsible to cancel tariffs on goods, arguing that it could lead to “higher prices, which affect the citizens,” and because Iraq is “a rich and does not need to tax revenue or customs.”

The economist said, 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 consistent with the nature of the goods entering the local market , the size and type of domestic production and the impact of imported goods on the local product and protect it and prevent dumping and monopoly, “returned to” the application of the tariff as it is required as a principle in public finance, but it needs rules consistent with local production and the needs of the country at home and imported goods. ”
al-Bayati said, that such a “system can not be applied in a country where there is no local production, trade did not care for the citizen, as well as the spread of corruption, rising prices, which impact on the purchasing power of the citizen,” pointing out that “the application of the tariff could cause backlash in iraqi economy . ”

Affairs specialist customs and teaching in the Faculty of Management and Economics at the University of Baghdad, Saleh al-Khalidi, 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, foreign and domestic competition in the internal market “,

According to Khalidi, if “I want to protect is to be effective and serve the protective purpose , 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 local price ,” he continued, “that is, the proportion of customs duty are sufficient to cover Item cost of producing 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 a detailed drawing on the amount of local Item need for protection. ”

For his part, proposed a financial expert, Majid Pictur, in an interview to the (long-Presse), that “there would be alternative step to the law is to issue import licenses to traders to organize the business process, prevent the entry of shoddy goods not conforming to international standards,” adding that “the issuance of such licenses facilitate the work of the Ministry of Planning and Trade and the General Customs Authority, to know Exporting Countries and the quantity and quality of imported materials, as well as help prevent the entry of inferior goods because it obliges the trader to import goods subject to international standards. ”

The former House of Representatives passed the Tariff Act of 2010, and was the most prominent justifications released the pricing in line with the reform of the Iraqi economy and the many changes that have occurred in the law.

The law provides for the imposition of customs duties on imported goods not included in the table of 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 law Investment No. 13 of 2006, as amended on imported goods for the purposes of investment projects exclusively, it comes 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 it with the entry of U.S. troops in 2003, to issue a civil governor in Iraq, Paul Bremer, a fee worth five percent on goods entering Iraq, then charges the reconstruction of Iraq



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