Dr Wafa James Baldwin: Legislative stability of the most important factors prosperity
Dr . Wafa James Baldwin: Legislative stability of the most important factors prosperity
BAGHDAD - Imad emirate
Continue the role of taxes in Iraq to contribute in pushing investors toward the employment of their money in Iraq, and for several reasons, for a range of investment climate factors, and comes in the forefront of degradation and deterioration of infrastructure, including electricity, roads, services as well as higher production costs in general, and the competition of imported goods for local production and the spread of administrative corruption. If we add to that the possibility of getting rid of taxes raised in front of us showing a group of mostly negative variables.
In this matter the economic Academy d said. Wafa James Baldwin for "morning": The possibility of getting rid of raising taxes is one of the positive factors in stimulating investment, these variables need to be a thorough study of each of them to see each variable in pay or hinder
She James Baldwin: On the other, the side of the Iraqi legislature that seeks hard to dig out the private sector from its level low, the private sector is also in need of an attractive work environment that enables it to stand on his feet and left the crutches Reclining them (government support).
She pointed to the possibility of the availability of these conditions, including the political stability it can not be the economic and commercial activity to flourish and can not to the owners of capital even if they are modest that Agamarwa investment without him, it represents the environment in which availability effectively ensure your participation money and without fear or hesitation.
She James Baldwin: Then Legislative stability comes because the legislation and laws are the rules for commercial activity in its different forms, pointing at instability of legislation dither performance, and the investor can determine his steps and an estimate results of its work, what is permissible today may become prohibited tomorrow, or vice versa may occur and thus failure to ensure competitive business environment. Experiences of developed countries has shown including the Aada room for doubt that the legislative stability of the most important prosperity factors.
She drew Economic Academy to the need to tackle corruption and nepotism to prevent its impact on growth, widened in recent years and seriously makes it difficult to exercise any commercial activity properly under these skies.
She stressed that giving priority to the role of the private sector and the areas that are supposed to activity which is practiced through a clear and well thought out for this role, nature and prospects and areas that are supposed to exercise the activity in which the limits, indicating that such a view may be subject to some modifications, alterations in accordance with the conditions of the country and its development but the change continued volatility and sudden shocks in orientation states reflect negatively on activity economic development.
She d. James Baldwin that the effects of government activity on the national economy can we touch through tax laws, because the concept of marginal efficiency of investment a related expected profit from such additions carried out by establishments to their assets produced, so it is normal to have employer interest tax affecting profit established.
Therefore, the amount of investment spending depends on the rate of net revenue, and it can be assumed that taxes lead to reduced investment spending.
It concluded d. James Baldwin said: but can not provide evidence of a clear relationship between tax rates and investment incentives, because there is no objective to measure the tax level is very high which affects the investment.
It should be for any study on the effects of taxes on investment to address some of the indirect effects, such as access policy pursued by the government if Margbt to make changes in that policy, and there is no doubt that such a policy will have implications for aggregate demand and thus effective projects profits of investment.