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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Staff salaries in Iraq ... anger and suspicion over a government attempt to "maximize resources"

    Rocky
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    • Post n°1

    Staff salaries in Iraq ... anger and suspicion over a government attempt to "maximize resources" Empty Staff salaries in Iraq ... anger and suspicion over a government attempt to "maximize resources"

    Post by Rocky Sun Apr 18, 2021 9:21 am

    [size=39]Staff salaries in Iraq ... anger and suspicion over a government attempt to "maximize resources"

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    The crisis of employee salaries in Iraq has returned to the fore, after the leak of a document issued by the Ministry of Finance in which the Minister, Ali Abdul Amir Allawi, requested the application of the tax withholding decision on state employees, a move that sparked public anger, legal criticism and doubts about its economic viability.
    The document, published by local media on Friday, and the Ministry of Finance acknowledged its authenticity, stated that the Minister of Finance asked the government to start imposing taxes on employees' salaries at specific rates and retroactively, extending to the beginning of this year, relying on this on a paragraph within the general budget.
    On Saturday, the Deputy Speaker of the Iraqi Parliament, Bashir Al-Haddad, issued a statement saying that "the proposal of the Ministry of Finance is a legal violation of the budget provisions," calling on "the Ministry of Finance to search for maximizing state resources instead of tax deductions for employees and retirees."
    Before that, the Ministry of Finance defended its decision, saying that it "does not include all categories of employees, and it came in implementation of the provisions of Article 34 of the General Budget Law."
    She said in a statement that the decision "includes the lower classes, and the Council of Ministers has the power to revoke it."
    The decision caused great outrage, both inside the parliament and at the popular level, as members of the Finance Committee threatened to question Minister Ali Allawi in the House of Representatives.

    Political analyst and writer Iyad Al-Anbar wrote that the aim of the move was to "make a job in the government sector worthless."

    Legal expert Husam al-Din al-Sabbagh says that there is "a great paradox in the statements, as Parliament says one thing and the government says something else."
    "The lack of clarity in the laws inside Iraq is the main reason for this and other previous problems that Iraq has witnessed," he added in a statement to Al-Hurra.
    Nevertheless, Al-Sabbagh believes that "the constitution was clear regarding the legislation of laws, as it stipulated that there should be legislation from Parliament to act on its basis."
    He added, for example, if the government wants to impose new taxes, it must go to the tax law, amend it, and the parliament approves that.
    On Friday, a government source denied the existence of any government decision or tendency to impose additional taxes on the salaries of employees and retirees.  
    The source said in a statement to the official news agency that "the prime minister had indicated on more than one occasion the need to pay attention to the income of the poor and spare them the effects of economic fluctuations and crises."  
    And the Iraqis faced a year full of economic challenges, and fears have increased recently that things will reach worse conditions after the approval of a budget for 2021, focusing on austerity.
    Iraqi government officials emphasized at the time that the goal of the austerity budget was to withstand an unprecedented financial crisis resulting from the emerging Corona virus pandemic and the collapse of oil prices, whose sales finance 90 percent of the budget.
    Baghdad is expected to end this turbulent year, with GDP growth shrinking by 11 percent and the poverty rate rising to 40 percent of the country's 40 million people.
    What made matters worse is the decline in the value of the local currency by about 25 percent against the dollar, after the government's decision to reduce the value of the dinar so that the selling price of 100 dollars reached 145 thousand dinars instead of 120 thousand.
    "It is unreasonable for the government to reduce the value of the dinar and then impose a tax on the salaries of employees who were already affected by the devaluation of the dinar," said economic analyst Ali Al-Morshedy.
    He adds to the Al-Hurra website that, "Anyone affected by these procedures can resort to the judiciary, because the budget law was approved in Parliament and is correct, but it was not published in the Official Gazette and therefore it cannot be applied on the ground until the moment."
    The public sector is the largest employer in Iraq with about four million employees, in addition to three million retirees and one million people receiving social welfare salaries. Public sector employees are outraged by these measures. 
    The budget plan hopes to achieve 18 trillion in non-oil revenues in 2021, compared to 11 trillion in the 2019 budget. It expects oil revenues to reach 73 trillion, 20 trillion less than in 2019.
    Iraq did not approve the 2020 budget due to political tensions. The decrease in expected oil profits is due to the 2021 budget forecast that Iraq will sell each barrel at $ 42, which is lower than current crude market prices and much lower than the $ 56 per barrel price in the 2019 budget.
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