[size=30]Taxes, the price of dollars, and the threat of "structuring" ... 3 reasons that push the government to "target" employees
2021-04-17
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Yes Iraq: Baghdad
The various governmental decisions in the field of "economic reform", reducing financial waste and maximizing revenues, follow many steps, most of which have become a conviction among the public and observers that the current government "targets employees", which raises questions about the desired goals of this approach.
Since the formation of the current government and the establishment of the White Paper, and the statements of the Minister of Finance, all these indicators show the extent of the government's dissatisfaction with the amount of money consumed by government employees, while the step to reduce the dinar against the dollar to provide salaries has emerged, in addition to the intentions to impose taxes and deductions on the salaries of employees, and other indicators. The most recent of which was the hinting by the government financial advisor, Mazhar Muhammad Salih, that there are 400,000 employees in “losing” public companies who represent “dependents” on the state budget and consume salaries without compensation or production.
While questions arise about the reason for this targeting towards employees, the economist Manar Al-Obaidi says in a clarification received by "Yis Iraq", "Since the first day of the Minister of Finance assuming his position, he unequivocally declared that the problem of the Iraqi state lies in the operating expenses, specifically in a file. Salaries, and any solution that does not include reducing these salaries and expenses, it is a non-radical solution and will be a patchwork solution. "
Al-Obaidi considered that “reducing the exchange rate and raising the tax on the employee in the public sector has three main objectives,” indicating that these goals are: “Significantly reducing the market value of the salaries of employees in the public sector, and reducing the interest of job seekers to work in the government sector by not The existence of economic feasibility to work in the public sector, as well as "pushing employees in the public sector to switch to the private sector to reduce the number of public sector employees."
He pointed out that "it is clear that the Iraqi government decided to reduce the value of public sector salaries to 50% of their current value," while Al-Obaidi points to a clear loophole that does not integrate with the government’s approach, representing “the lack of vigorous plans to support the private sector and government measures still hinder work in the private sector Accordingly, the state has not been able to create a real alternative to the public sector, and laws supporting the private sector and investment are still largely suspended.
He states that "the Iraqi government has not been able to find support and motivation programs to reduce the impact of the measures taken, especially in the field of food and drug security, and left the citizen to face decisions alone." Closed, which contributes to creating a movement of internal money circulation, including support for the industrial sector, in both its productive and transformational sectors, as well as pushing for agricultural investment projects to provide all the products required in the agricultural market.
Al-Obaidi added: "The Ministry of Finance is working in Mina from the Ministry of Agriculture, Industry and Trade, which means the complete absence of coordination to draw up an economic policy that works to increase the growth of the Iraqi economy and works to reduce the effects of decisions on the Iraqi citizen."
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