[size=35][size=35]Economic distortions and taxes.. a new obstacle to the budget and solutions are absent[/size]
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2023-05-24 | 14:16
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Report - Alsumaria News
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For years, the Iraqi government relied on oil revenues by more than 95% of the total budget, and the budget came with a total proposed expenditure of 197.8 trillion dinars ($152.2 billion). The price of a barrel of oil is about $70 per barrel, with a financial deficit of 63 trillion dinars. ($48.5 billion), according to Prime Minister Muhammad al-Sudani, who indicated that this budget will be repeated in the next two years as well.
The General Budget Law included imposing taxes on many consumables to enhance non-oil revenues, which are very important for reducing the deficit, and also a tool for directing the economy towards economic diversification in the long term to strengthen the economy.
Indicate block head[url=https://www.alsumaria.tv/Entity/133505/%D8%A7%D9%84%D8%AD%D8%B2%D8%A8 %D8%A7%D9%84%D8%AF%D9%8A%D9%85%D9%82%D8%B1%D8%A7%D8%B7%D9%8A %D8%A7%D9%84%D9%83%D8%B1%D8%AF%D8%B3%D8%AA%D8%A7%D9%86%D9%8A/ar/]Kurdistan Democratic Party[/url]In the Iraqi parliament, Vian Sabri pointed out, "Any step taken by the federal government regarding enhancing federal revenues or that the Finance Committee in Parliament came after extensive studies, we are with it."
Sabri said in an interview with[url=https://www.alsumaria.tv/Entity/133473/%D8%A7%D9%84%D8%B3%D9%88%D9%85%D8%B1%D9%8A%D8%A9 %D9%86%D9%8A%D9%88%D8%B2/ar/]Alsumaria News[/url]"We, as an Iraqi state, need to enhance other non-oil revenues, given that the Iraqi budget is completely dependent on oil, so taxes must be collected from electricity, water, fuel, and others," explaining that "when the Iraqi citizen has economic stability and a real economic structure, such as the revenues of the private sector and projects investment and its rise in the budget, there will certainly be other incomes for the Iraqi individual in general.
And she added, "It is possible to see the matter in a positive or negative way if we want, but in the end the government must strengthen federal revenues because they are very important, and the rents and the federal treasury should not be based solely on oil in the event that[You must be registered and logged in to see this link.]He owns a lot of goods, and he has agriculture and industry, and we can invest them.”
The budget included the imposition of new taxes of 5% on the revenues of sales of one liter of gasoline, and also 10% on gas or kerosene oil, and a rate of 15% on imported fuel, in addition to 1%. On black oil sales
For his part, a member of Parliament said about the bloc[url=https://www.alsumaria.tv/Entity/133505/%D8%A7%D9%84%D8%AD%D8%B2%D8%A8 %D8%A7%D9%84%D8%AF%D9%8A%D9%85%D9%82%D8%B1%D8%A7%D8%B7%D9%8A %D8%A7%D9%84%D9%83%D8%B1%D8%AF%D8%B3%D8%AA%D8%A7%D9%86%D9%8A/ar/]Kurdistan Democratic Party[/url]Shirvan Al-Dauberdan, in an interview with[url=https://www.alsumaria.tv/Entity/133473/%D8%A7%D9%84%D8%B3%D9%88%D9%85%D8%B1%D9%8A%D8%A9 %D9%86%D9%8A%D9%88%D8%B2/ar/]Alsumaria News[/url], that "balancing[You must be registered and logged in to see this link.]And its revenues need to be maximized because of its dependence on oil by 95%, and this matter is very negative for the Iraqi economy in the near future, indicating that “putting a very small amount that does not exceed 70 dinars on fuel does not cause harm to the citizen, with a proposal to exempt taxis from it.” ".
He pointed out, "From 3-4 billion dollars annually was spent before[url=https://www.alsumaria.tv/Entity/3238106360/%D9%88%D8%B2%D8%A7%D8%B1%D8%A9 %D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A%D8%A9/ar/]Ministry of Finance[/url]To support the import of fuel,” stressing that “electricity also needs to set real collection, given that so far only 7% of the actual fees have been collected on it, while government departments only if the collection is taken correctly, it reaches 27%, and this is all considered a waste of public money.” He added ,
"The government must take a real stance to collect real revenues from (tax, customs, ports, communication companies, fuel and electricity), and the ministries that rely on self-financing must take their fees from their work and not depend on the government," pointing out that "more than 10 million An Iraqi employee depends on the budget for their salaries on oil, and in the event of a drop in the price of a barrel, the government will not be able to pay it.
Al-Dobardan explained, "Modifying the salary scale of the three presidencies is not equal to anything in front of the tax revenues that the government will put in place, and there is a real review of the federal government for all aspects of the state to reduce expenditures, and there are many ministries that need great support, such as health and education, and we must move away from mobilizing the Iraqi people and go towards industrial and agricultural development.
Observers believe that these taxes will enhance non-oil revenues and raise their contribution rate to 13%, but they will be offset by a rise in the cost of transporting people and goods and a new rise in the prices of goods and services, whether produced locally or imported, and this may lead to exceeding the annual inflation rate specified in the budget. At a rate of 5%, which will have a negative impact on the standard of living of citizens.”
For his part, the independent MP and a member[url=https://www.alsumaria.tv/Entity/467780320/%D8%A7%D9%84%D9%84%D8%AC%D9%86%D8%A9 %D8%A7%D9%84%D9%82%D8%A7%D9%86%D9%88%D9%86%D9%8A%D8%A9/ar/]Legal Committee[/url]Raed Al-Maliki said, “It is expected at the beginning that the Finance Committee will reduce the percentage of the budget deficit and reduce spending in other ways, but after studying the budget items, the committee found that all the doors that help in this matter are closed,” noting that “what happened is a A transfer from some paragraphs to new ones that have been included in the budget.
Al-Maliki told[url=https://www.alsumaria.tv/Entity/133473/%D8%A7%D9%84%D8%B3%D9%88%D9%85%D8%B1%D9%8A%D8%A9 %D9%86%D9%8A%D9%88%D8%B2/ar/]Alsumaria News[/url]“The government insisted on imposing taxes and fees on oil derivatives and assigning this matter to the work of the companies that produce and distribute these derivatives, as well as the refinery companies, and this will have negative effects on the work of these companies, as well as their employees and their financial capacity.”
He added, "This decision came to reduce the percentage of the deficit in the budget, but there is no real guarantee that the matter will not fall on the citizen at the end," pointing out that "if taxes and fees are imposed on these producing companies, their revenues will decrease and they will increase the prices of products.” Which you sell to the local market even if this is not approved in the budget, given that determining the prices of oil products is not subject to budget laws, but rather to commercial standards.
Al-Maliki concluded his speech, that "the decision is to maximize the state's revenues, but all the consequences that it will cause on the citizen and the economy, as well as the institutions themselves, must be known."
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2023-05-24 | 14:16
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Report - Alsumaria News
The economic situation in Iraq is witnessing a significant decline, especially after the decline in the value of the Iraqi dinar against the dollar, as well as the distortions that accompany the systems used in managing economic affairs in it and the failure to address new, organized and developed types.
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For years, the Iraqi government relied on oil revenues by more than 95% of the total budget, and the budget came with a total proposed expenditure of 197.8 trillion dinars ($152.2 billion). The price of a barrel of oil is about $70 per barrel, with a financial deficit of 63 trillion dinars. ($48.5 billion), according to Prime Minister Muhammad al-Sudani, who indicated that this budget will be repeated in the next two years as well.
The General Budget Law included imposing taxes on many consumables to enhance non-oil revenues, which are very important for reducing the deficit, and also a tool for directing the economy towards economic diversification in the long term to strengthen the economy.
Indicate block head[url=https://www.alsumaria.tv/Entity/133505/%D8%A7%D9%84%D8%AD%D8%B2%D8%A8 %D8%A7%D9%84%D8%AF%D9%8A%D9%85%D9%82%D8%B1%D8%A7%D8%B7%D9%8A %D8%A7%D9%84%D9%83%D8%B1%D8%AF%D8%B3%D8%AA%D8%A7%D9%86%D9%8A/ar/]Kurdistan Democratic Party[/url]In the Iraqi parliament, Vian Sabri pointed out, "Any step taken by the federal government regarding enhancing federal revenues or that the Finance Committee in Parliament came after extensive studies, we are with it."
Sabri said in an interview with[url=https://www.alsumaria.tv/Entity/133473/%D8%A7%D9%84%D8%B3%D9%88%D9%85%D8%B1%D9%8A%D8%A9 %D9%86%D9%8A%D9%88%D8%B2/ar/]Alsumaria News[/url]"We, as an Iraqi state, need to enhance other non-oil revenues, given that the Iraqi budget is completely dependent on oil, so taxes must be collected from electricity, water, fuel, and others," explaining that "when the Iraqi citizen has economic stability and a real economic structure, such as the revenues of the private sector and projects investment and its rise in the budget, there will certainly be other incomes for the Iraqi individual in general.
And she added, "It is possible to see the matter in a positive or negative way if we want, but in the end the government must strengthen federal revenues because they are very important, and the rents and the federal treasury should not be based solely on oil in the event that[You must be registered and logged in to see this link.]He owns a lot of goods, and he has agriculture and industry, and we can invest them.”
The budget included the imposition of new taxes of 5% on the revenues of sales of one liter of gasoline, and also 10% on gas or kerosene oil, and a rate of 15% on imported fuel, in addition to 1%. On black oil sales
For his part, a member of Parliament said about the bloc[url=https://www.alsumaria.tv/Entity/133505/%D8%A7%D9%84%D8%AD%D8%B2%D8%A8 %D8%A7%D9%84%D8%AF%D9%8A%D9%85%D9%82%D8%B1%D8%A7%D8%B7%D9%8A %D8%A7%D9%84%D9%83%D8%B1%D8%AF%D8%B3%D8%AA%D8%A7%D9%86%D9%8A/ar/]Kurdistan Democratic Party[/url]Shirvan Al-Dauberdan, in an interview with[url=https://www.alsumaria.tv/Entity/133473/%D8%A7%D9%84%D8%B3%D9%88%D9%85%D8%B1%D9%8A%D8%A9 %D9%86%D9%8A%D9%88%D8%B2/ar/]Alsumaria News[/url], that "balancing[You must be registered and logged in to see this link.]And its revenues need to be maximized because of its dependence on oil by 95%, and this matter is very negative for the Iraqi economy in the near future, indicating that “putting a very small amount that does not exceed 70 dinars on fuel does not cause harm to the citizen, with a proposal to exempt taxis from it.” ".
He pointed out, "From 3-4 billion dollars annually was spent before[url=https://www.alsumaria.tv/Entity/3238106360/%D9%88%D8%B2%D8%A7%D8%B1%D8%A9 %D8%A7%D9%84%D9%85%D8%A7%D9%84%D9%8A%D8%A9/ar/]Ministry of Finance[/url]To support the import of fuel,” stressing that “electricity also needs to set real collection, given that so far only 7% of the actual fees have been collected on it, while government departments only if the collection is taken correctly, it reaches 27%, and this is all considered a waste of public money.” He added ,
"The government must take a real stance to collect real revenues from (tax, customs, ports, communication companies, fuel and electricity), and the ministries that rely on self-financing must take their fees from their work and not depend on the government," pointing out that "more than 10 million An Iraqi employee depends on the budget for their salaries on oil, and in the event of a drop in the price of a barrel, the government will not be able to pay it.
Al-Dobardan explained, "Modifying the salary scale of the three presidencies is not equal to anything in front of the tax revenues that the government will put in place, and there is a real review of the federal government for all aspects of the state to reduce expenditures, and there are many ministries that need great support, such as health and education, and we must move away from mobilizing the Iraqi people and go towards industrial and agricultural development.
Observers believe that these taxes will enhance non-oil revenues and raise their contribution rate to 13%, but they will be offset by a rise in the cost of transporting people and goods and a new rise in the prices of goods and services, whether produced locally or imported, and this may lead to exceeding the annual inflation rate specified in the budget. At a rate of 5%, which will have a negative impact on the standard of living of citizens.”
For his part, the independent MP and a member[url=https://www.alsumaria.tv/Entity/467780320/%D8%A7%D9%84%D9%84%D8%AC%D9%86%D8%A9 %D8%A7%D9%84%D9%82%D8%A7%D9%86%D9%88%D9%86%D9%8A%D8%A9/ar/]Legal Committee[/url]Raed Al-Maliki said, “It is expected at the beginning that the Finance Committee will reduce the percentage of the budget deficit and reduce spending in other ways, but after studying the budget items, the committee found that all the doors that help in this matter are closed,” noting that “what happened is a A transfer from some paragraphs to new ones that have been included in the budget.
Al-Maliki told[url=https://www.alsumaria.tv/Entity/133473/%D8%A7%D9%84%D8%B3%D9%88%D9%85%D8%B1%D9%8A%D8%A9 %D9%86%D9%8A%D9%88%D8%B2/ar/]Alsumaria News[/url]“The government insisted on imposing taxes and fees on oil derivatives and assigning this matter to the work of the companies that produce and distribute these derivatives, as well as the refinery companies, and this will have negative effects on the work of these companies, as well as their employees and their financial capacity.”
He added, "This decision came to reduce the percentage of the deficit in the budget, but there is no real guarantee that the matter will not fall on the citizen at the end," pointing out that "if taxes and fees are imposed on these producing companies, their revenues will decrease and they will increase the prices of products.” Which you sell to the local market even if this is not approved in the budget, given that determining the prices of oil products is not subject to budget laws, but rather to commercial standards.
Al-Maliki concluded his speech, that "the decision is to maximize the state's revenues, but all the consequences that it will cause on the citizen and the economy, as well as the institutions themselves, must be known."
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