Mixed reactions to postpone the tariff action in Iraq

10/20/2015 10:08:00

Mixed reactions to postpone the tariff action in Iraq

Iraqi federal government made a decision to postpone the introduction of new tariff until the completion of the readiness of border crossing points to be applied, what sparked reactions from the private sector, which had hoped that the tariff contribute to restore life to the plants productivity and institutions, and thus revive the local product. Economists pointed out that the postponement of the implementation of the new tariff caused by certain parties claim that, under the conflict of interests with the content of the resolution. These authorities pointed out that the monetary value placed on the tariffs have led to the deterioration of economic activity and to stop local industries productivity, and thus the migration of a large number of people with experience and skills, in addition to the impact of the suspension of tariff to increase the financial resources of the state.

The application of the new tariff stumbled repeatedly over demands by some countries and traders to activate the tariff law, after the abolition of the old law developed by the US civil administrator for Iraq after 2003, Paul Bremer, who is serving pay 5 percent tax on all imported goods.

Economic Adviser to the Prime Minister and the appearance of Mohammed Saleh said: «no point in tariff law if it is applied in all border crossings», adding that «the law involves significant benefits, including the strengthening of the state's resources and the protection of the domestic product». He warned not to apply the law in good shape, because it creates a challenge to the sovereignty and unity of customs, especially as it supported in most countries.

He said the academic Muzaffar Hosseini: «become the customs authorities charge 5 percent of the value of imported goods to tax the reconstruction of Iraq with a wide exemptions, and increased it complicated after legislation in 2011 law, but the government has failed to apply for economic reasons, social, administrative and political».

And in front of the plurality of opinions, there are those who believe that the Iraqi economy does not assume additional issues will bring the tariff law, as it will increase prices and falling trade and economic activity, and the greatest burden will fall on consumers and the poor in particular. Some of them believe that the law will open new doors for corruption and the corrupt, while others point out that Iraq does not need additional sources of revenue in the event of improved oil revenues.

Views and suggests that the goal of tariff minimum in accordance with the requirements of the economic situation, though be to increase public revenues or protect domestic products or facilitate the flow of foreign trade, as well as can be determined tariff according to the new law by 10 percent, simplifies the collection of tariff measures and reduce the chances of fraud and forgery and other methods used by some traders to increase their profits in the absence of government control.

The Director-General of the Iraqi Customs Authority Hakim Jassim, said that the tariff law applied in three phases, the first involving specific types of goods, and goods more second, and third all goods entering Iraq. He said: «Customs Authority provided the supplies necessary for the application of the law at border posts», pointing out that «the law will allow Iraq to join the membership of the World Trade Organization». He pointed out that «Customs Authority signed with the concerned authorities in the Kurdistan region agreement obliged to implement the law and unification of customs work and pricing».

And it raised the suspension of the tariff fears in some quarters that the view that the market protection achieved through the application of legislator and the window to protect the local product and to ensure a free market in the country, such as tariffs and protect the national product and the consumer and competitive decisions and regulations relating to economic market objectives of the laws of the laws. She pointed to the role of the private sector arm, which is able to lead the market and the achievement of development projects that contribute to get the economy moving, as scheduled, according to studies that the percentage contribution of the private sector be in the GDP in 2030 more than 50 percent.