The IMF is developing a plan to improve Iraq's tax revenues

The IMF is developing a plan to improve Iraq's tax revenues

economy Since 2017-04-27 at 16:29 (Baghdad time)

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Representatives of the Iraqi private sector discussed with a delegation from the International Monetary Fund, the latter's approval of a loan to Iraq to pay the arrears of Iraqi contractors, processors and farmers, and ways to solve this problem, as this is important in the stability of the economy.
The IMF Vice President for the Middle East and Asia, Christian Jos, asked at the meeting in Baghdad about the possibilities that increase the state revenues, including the activation of taxes and those imposed on non-oil products, pointing out that customs duties were between 5 and 10 per cent, Is not the right way to collect customs revenue, and stressed the need to change this method to 30 percent.
He said that the fastest gains and revenues result from the regulation of the unit of taxation, and this generates significant revenue as imposed on the segment of large traders.
He called for a freeze on employment until the administration was developed, because the high proportion of civil servants was a means of appeasing and employing them without regard to efficiency, which would lead to a deficit over the next 10 years.
He pointed to the problem of weakness in the banking sector and the importance of strengthening the business through the restructuring of the Rafidain and Rashid government banks, and open a large space in front of private banks with the need to assess the weaknesses and the establishment of the correct foundations to combat money laundering, can be recourse to the Integrity Commission and specialized organizations. He noted the progress made by the Office of Financial Supervision in auditing unaudited transactions.
The economic expert Ibrahim al-Baghdadi said in an intervention that Iraq began to meet the customs tariff, which increased its resources in some customs outlets to more than 30 times, and increased the collection of electricity 20 times, and referred the Ministry of Electricity to collect electricity wages on companies under investment contracts, Positive.
He stressed that payment of receivables will move the market and address the weakness of liquidity in the markets, which affected the level of per capita income and small businesses.
The head of the Iraqi Contractors Union Ali Sanafi, called for the release of arrears of transactions audited by the Office of Financial Supervision. He said that the contractors union includes 34 thousand contractors, and receives a large part of their suffering in the stage of tax calculation, because the amounts of tax deduction reserved in the provinces.
Economic researcher Lubna Al-Shammari said that reforming the banking sector is a gateway to the entry of diversified investments to Iraq


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