Saleh stresses the importance of non-oil revenues and tax reform in supporting the budget

[size=46]Saleh stresses the importance of non-oil revenues and tax reform in supporting the budget[/size]

Economy

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Adviser to the Prime Minister for Financial Affairs, Mazhar Muhammad Salih, stressed, on Friday, the importance of updating non-oil revenue maps, and achieving tax reform, to support the general budget that exceeds the gross domestic product of Iraq.

Saleh said, in a statement to the official agency, that "public finance in our country is in dire need to update non-oil revenue maps, especially from revenue streams belonging to taxpayers whose collection has been completely neglected and without burdening citizens with limited or low incomes in the event that they are widely adopted." ".

He added, "The subsidy equation in the general budget, which exceeds 13% of Iraq's gross domestic product, and which is ensured by government spending from oil revenues, mostly touches the needs of the poor and the rich on an equal footing without discrimination. It requires an equation of non-oil revenues in return that is very fair and comprehensive.Non-oil revenues (which are still very low, estimated at about 4 to 5 percent of GDP) come into contact with the evaded revenue pools, which are called (gray-colored) vessels, and they evade, as we mentioned, from paying their financial obligations regarding the state's tasks and tax requirements.

And he continued, "We mean here the activity of mysterious, gray individuals, which constitute 60% to 65% of the total activity of the private sector or the market sector in our country today. The problems of the rentier economy in our country have generated a culture of ignoring the few or largest revenues, while the world's public finances consisted of mountains of resources from the accumulation of scattered financial grains of sand, which are collected from few but widespread and numerous tax and revenue vessels, and at the same time achieve the goals of public budgets in their countries.”

Salih pointed out that "tax reform, on the other hand, has also become an obligatory task inherent in providing financial discipline in Iraq and in two directions, the first: Adopting soft lump-sum taxes on income segments with their various denominations and according to encourage easy collection methods that immediate payment and enhance tax revenue in a transparent manner.To choose and apply the simplest technical means and the most capable of reaching the taxable bases, which makes the tax or other revenue revenues of fees and service charges and others relative to the gross domestic product at least equal to the subsidy rate in the federal budget itself, and adopting that as a financial goal that should be pursued within the government program,And that the taxes and fees are wide and comprehensive and imposed fairly without burdens on the shoulders of the taxpayers (mostly), but rather encourage them voluntarily to contribute nationally to support public finances in our country, because of the ease and flexibility of collecting their amounts and with high financial governance.[/size]
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