Budget 2018 .. Taxes inflame prices and increase the concerns of citizens Editor Hossam Al - Khafaj

Budget 2018 .. Taxes inflame prices and increase the concerns of citizens Editor Hossam Al - Khafaji - Monday 12 March

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"Taxes and collection" are two main parts of the revenues of capitalist countries, which rely mainly on the market economy, and imposed in proportion to the nature of the economic situation and services provided to the citizen, to be the governments of those countries "transparent" with taxpayers and the fate of spending each of them, In Iraq did not receive the required follow-up, considering that Iraq is a country rich in oil. 

The tax policy began in Iraq in 2016, where it has adopted a large budget within its budget after the drop in oil prices and for the purpose of increasing non-oil revenues, faced with the rejection of economists, citizens and traders, and referred to it as "arbitrariness, corruption and manipulation of privatization" "He said.


The International Monetary Fund has requested Iraq as part of its recommendations in the experts report on the consultations of Article IV of 2017, and the second review under the three-year credit readiness agreement to create financial space to promote human capital and rebuild the physical capital in Iraq by increasing tax revenues Oil and the reduction of public consumption is very high. 


Taxes imposed "arbitrariness of government corruption , "

says the head of the economic center Dergham Mohammed Ali, Alsumaria News for, " The taxes in Iraq imposes a qualitative, and away from any improvement in the economic reality in flaccid corruption state, and without transparency , " he said, adding that "there is a slouch in Government spending versus declining job opportunities, income levels, poor services and lack of prospects for reform. "


According to Ali, "the additional taxes in Iraq are considered a kind of arbitrariness and corruption in the performance of government, not revenue worthy of the state," noting that "they distinguish the class of politicians and surrounded by privileges non-arrogant and wasteful and not pursue economic development methods." 


Taxes without a new problem borne by the citizen services

economist Hilal Tahan says Alsumaria News for, " The tax is a double-edged weapon needed the extent of the Iraqi state has as an oil country depends 93% on imports, other revenues constitute only 7%."


"The imposition of these taxes without the presence of services similar to other countries in the world is a problem borne by the citizen," he explained. "The tax imposed by the government on the professions and traders is transferred to the citizen who will be burdened, and therefore the state to impose these taxes gradually, In parallel with the provision of basic services to citizens. " 


According to IMF experts under the three-year credit agreement agreement on Article IV 2017 consultations, the Iraqi authorities should prepare measures in 2018 to reduce the initial non-oil deficit measured on an accrual basis by 2.3 trillion dinars and make the adjustment of public finances Slanted towards non-oil revenues and ongoing expenditures.


The IMF called on Iraq to begin preparing the following measures to finalize them during the third review, in time for inclusion in the 2018 budget, including the imposition of relative taxes or low quality on a few additional products or services (with a view to increasing taxes) Indirect by one trillion Iraqi dinars in 2018). 


A maximum limit for non-wage compensation (allowances, surcharges and others) of IQD 350,000 (about US $ 300) per month for all civil servants, which could save about IQD 0.5 trillion, or approximately 3% of the service fee Civil status, is borne by a quarter of the civil servants who receive the best wages. 


In addition to replacing five retired civil servants with one staff member, resulting in savings of 0.6 trillion Iraqi dinars in 2018.


The Iraqi government raised the price of taxes in the current year budget 2018, including alcoholic beverages by 200%, import of cars by 15% and real estate tax by 12%, and introduced other taxes, including the tax of sweetened beverages by 10 cents and the taxes of hotel services and communications 10-15%. 


"Taxes

imposed on many goods such as alcoholic beverages, juices, refreshments, barbershops, malls, mobile cards and the internet service come to tame the citizen on privatization projects," MP Joseph Salihou told Alsumaria News. 

"The start of imposing taxes should be matched by the provision of services, not what we see as a clear decline in the basic services provided to citizens," Saliyah said. "The budget in its current form is not convincing."

As part of the recommendations of the International Monetary Fund in the Experts' Report on Article IV Consultations of 2017, the budgeted transfers of the electricity sector will be reduced by one trillion Iraqi dinars in 2018. This can be achieved through specific measures to improve the rate of collection or raise the electricity tariff. 


Budget of 2018 "loans and taxes excellence"

Member of the Committee on Economy and Investment Representative Abdul Salam al-Maliki, the federal budget for the current fiscal year as "budget loans and taxes excellence," pointing out that "Article 14 of the budget included loans and taxes by 13 trillion dinars," noting that " The House of Representatives when he passed the budget has worked to pass them in particular directions and ways of legitimacy. "


Maliki pointed out that "the government has other outlets through which you can get revenues to the budget more than you get from the imposition of taxes," explaining that "there are unnecessary tabulations of the budget can be canceled or reduced instead of burdening the citizen with new taxes, especially that the situation in the market suffers the case Recession". 

He added that "the government has followed the method of paying damage to other damage borne by the citizen through the mechanisms developed by the budget." 


Traders: taxes is unfair

says the owner of one of the shops in Baghdad's Alsumaria News, said that " the tax in Iraq is unfair because it imposes on certain goods without the other, as they impose on certain professions without the other." 

He believes that "some taxes were imposed without study and consultation with the concerned bodies, the Baghdad Chamber of Commerce," pointing out that "some taxes exceeded the limit."

"The increase in taxes and taxes created in the current year 2018 budget will lead to economic stagnation in general despite government statements that it will support the private sector in Iraq," said trader Mohammed al-Hassani. 

Al-Hassani described the taxes imposed on the trader as "theft" as "the trader's profits are paid to the government by providing poor services." 

For their part, rejected a number of citizens met with Alsumaria News, the imposition of any tax at this time, which is considered as "the worst times" experienced by the Iraqi citizen of displacement and unstable security conditions stable and unemployed. 

Including "citizen Mohammed Hamza," who said that "the government raise taxes for some services could be acceptable to the citizen if those services are of a high quality."



The House of Representatives voted in its session held on Saturday (March 3, 2018) on the federal budget for the current fiscal year.




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