Amid the challenges faced by Iraq financially, increasing the need for swift action to overcome this crisis, especially with the continued decline of the sale of crude oil prices and the lack of revenue that support the general budget.
Among the steps required tax collection to support the economy and investment, but this collection must be preceded by the development priorities of the tasks put, according to the Economic Advisory Ali Mahmoud.
And it confirms the need for the country to expert instruction and tax legislation towards design development purposes where the economic and technological development.
He points out that the tax mechanisms of action directed at the development-oriented jurist account, so called for the exemption of the shares in kind of capital companies from income tax.
On the tax reforms needed, the expert expressed the importance of amending Article 16 of the Companies Act No. 21 of 1997, by adding a new paragraph provides for the exemption of the kind quota of corporate capital income tax when the company registered with the Registrar of Companies.
Mahmoud said that the implementation of the proposal would bring a big boost in investment activity and in creating jobs and reducing unemployment, especially that kind of money capital is currently disabled or low and exploitation of real estate, agricultural land and non-agricultural fixed and other assets.
Under the general budget for 2016, which is scheduled to vote on the House of Representatives in the coming days on: «extinguish debts owed to the government owed by taxpayers to pay the tax due to the continuation of the official authorities to apply Article Project (20) of the Budget Law for the year 2008 for the period from 1/1/2009 until 31/12/2011 According to the provisions of paragraph (11) of Section IV of the Financial Administration Act No. 95 of 2004 amended. »
Observers believe economists that the imposition of taxes on essential goods and services reduces their ability to consumption, as well as on the production, which leads to low level of national income, and thus lead to a decrease in general and the lack of revenue for the state.
Also emphasizes the budget «expansion of open your door for investment and participation with the private sector by the ministries and departments not associated with the Ministry and the provinces up to its terms of reference and make up for this purpose a higher committee, that the Council of Ministers issued its own exceptions to the relevant laws instructions».