Tax reforms governing the financial track

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Tax reforms governing the financial track

3/20/2017 0:00

BAGHDAD / Imad Emirate

Iraq's economy has suffered from the weakness of the effectiveness of the tax system applied, what drives the need to work to repair the system and make it more efficient, and the trend towards comprehensive reforms and structural.


The most important revenue

Dr. Imad al - Ani said the "morning" that taxes constitute the essence of the basis for any financial legislation , the government of the device, pointing out that they represent a tool to regulate the financial track of the state, they constitute one of the most public revenues necessary to fund government spending on goods and services needed by the community.

And it seeks most governments in the world to make the taxes more efficient because of their importance in determining the role of the state in economic activity and social life.


Economic resources

He stressed that tax reform is in line with the change in strategy , which urges development, in order to reallocate economic resources so as to contribute to reducing unemployment and maintain the stability of inflation and what works to improve the levels of economic growth.

He said the tax reform works to reduce tax distortions in order to stabilize the economy and to continue to support economic competitiveness, in the sense that not be a tax reform disabled domestic and foreign private investment, but the opposite should tax policy be supportive of private activity.

Ani said , should be tax reform goes hand in hand with the requirements of the economic situation prevailing process in order to be more effective through the degree of government intervention in economic activity and the size of the economic reforms that the government intends to do, because the tax reform is part of a large operation.


Government borrowing

He pointed out that the optimal tax system that we aspire to reach him should be able to fill in important government revenues to cover essential government expenditures without excessive government borrowing and without discouraging economic activity.

The tax revenue is the President axis of government revenues in most economies, and it must be improved and developed in total government revenues, and by taking the necessary comprehensive and radical measures to achieve this goal and to replace the oil revenues gradually.


The difficulty of collection

He concluded Ani his speech by saying: that tax revenues in its current state is limited dramatically, and this is due to several reasons come in the forefront of the difficulty of collection and financial and administrative corruption in government agencies and the weakness of the private activity, as well as note that customs tax revenues are subject to the terms of international treaties and conventions, particularly those which provide by World trade , which aims to gradually remove customs barriers organization.

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