Zain Iraq: the tax and the government's decision will affect our sales

Author: HA, HH
Editor: HA, HH

twelve thirty-two 08/05/2015

Long-Presse / Baghdad
Promised Zain Iraq Telecom, on Wednesday, the government's decision to impose sales tax on Kartat shipping "will affect" in revenue sales, and confirmed that the lack of "benefit from it", and as she noted that it paid the value of the license fee and frequencies third generation, indicated that it its role is limited to collecting collection.

The company said in a statement received (range Press), a copy of it, "the Iraqi government's decision to impose a sales tax of 20% on Kartat charge the phone on their prices and all binding our categories," indicating that "the government that approved the law after approval by Parliament and began applying it From the first of August 2015. " The company added that "our role is limited only in the collection and supply of tax return to the Ministry of Finance through the General Authority for taxes," pointing out that "the communication companies have paid value of $ 1.25 billion license fee in addition to the frequencies fees The third generation, amounting to $ 307 million, and is continuing to pay the participation rate of the total revenues between 15-18%. "

The company confirmed that "Article 33 of the general budget of the Federal Law No. 2 of 2015 which was approved at the end of January of this year to be the imposition of sales tax on Kartat mobilize the mobile phone of all the pre-payment and billing post-paid lines as well as Internet services by 20%," pointing out that "the application of this law will affect our sales and revenue, and will not enter into our calculations thing will not benefit from them." The company added that "the new instructions number 5 in Article 3 (i) provides that the charge (mobile phone companies) by adding the amount of tax to mobile phone service and internet access price paid in advance or later and shown to the consumer, as is pay (the amount of tax) in accordance with paragraph (ii) every three months, accompanied by a certified report of the competent accountant explains his activity in accordance with the model prepared by the General Authority for taxes for this purpose. " She Zain that "received instructions of the Ministry of Finance No. 5 of 2015 for the application of the provisions of this paragraph of the law in the whole of Iraq," As we take into account the provisions of the law office by the Iraqi government after approval by Parliament, we look respectfully to the conviction of subscribers and are working for their service in accordance with the highest international standards. "

The mobile phone companies, announced on Friday (July 31, 2015), begin to impose 20% as "sales tax" on the cards and packaging for electronic mobile phone companies, as pointed out that the imposition of Aldharbah comes in implementation of the decision of the Ministry of Finance.

He was adviser to Prime Minister for Economic Affairs, confirmed Saturday (January 3, 2015) that the taxes imposed on the citizen will not be great but it will cover part of the budget deficit, noting that placed the government's plans to raise taxes foreign and domestic loans will cover the deficit, and called upon the economic expert to put the collection system "is protected from corruption" to obtaining the tax, confirmed a representative of the private banks, private banks will take that role in the next phase.

The Council approved, on Tuesday (June 2, 2015), to meet the customs tariffs and taxes in all border crossing points to Iraq, while pointing out that this procedure will take effect early next month of August.