Debate on the feasibility of the application of tariff and its impact on the Iraqi economy

19/03/2012 12:17

Baghdad, March 19 (Rn) - The Economic Commission representative, Monday, the activation of a law tariff will provide revenue of financially additional to the state treasury could be invested in the revitalization of agricultural and industrial sectors, while Asher Economists futility of activating the law, which will carry with it the negative aspects, stressing that the protection of the Iraqi economy is not by increasing taxes.

The Ministry of Finance announced yesterday it had decided to activate the tariff law in Iraq in June next, after postponing the implementation of the law to two consecutive terms.

The Ministry of Finance decided in September last to stop the introduction of tariffs until this year due to higher commodity prices, high price in the country.

The Ministry of Finance of Iraq was postponed in February 16 last tariff law work for an unspecified time because of some obstacles faced by the law and the mechanisms of action.

The decision of the parliamentary economic committee Mahma Khalil told the Kurdish news agency (Rn), "The Ministry of Trade and Commercial Control monitors Astaqraralsouk Iraq even after the application of tariff law, we are activating the law which will provide additional financial revenue to the state treasury."

He explained that the decision of the Economic Committee, "There are four laws began in the previous parliamentary session a consumer protection law and the protection of the product and the Iraqi anti-monopoly and tariff laws, and this is the full cycle of economic life."

In response to a fear of rising prices in the Iraqi market after the imposition of taxes on importers in accordance with the tariff law explained the Commission's decision that "the fragmentation of the fear comes from the need to go the money collected from the application of law to the compensation fund for farmers, farmers and industrialists Iraqis in order to be revenue available supplies for their work in the agricultural and industrial production. "

He said also, "it must be there to support the local product and that the State shall distribute industrial and agricultural supplies in accordance with the regulations and at subsidized prices so that there is encouragement for the local product." He said.

It was hoped to be activation of the Tariff Act in March / March last year after being passed by the Iraqi Council of Representatives.

The new law eliminates the tariff law issue by the civil governor Paul Bremer and the subject of all goods imported into the discount rate of 5% in taxes, while the new law discriminatory tariff starts from zero and up to 30%.

While counting the Iraqi government and the parliamentary economic committee of the activation code to activate the customs tariff of the Iraqi economy over the rival goods imported Economists believe that the application of the law will reflect negatively on the economy and the citizen will bear the consequences.

The economist said Majid picture's (Rn), "The purpose of the imposition of customs duties is not known until now if it is intended to provide resources to balance the question the other hand do we need this money the few and trivial compared with the financial possibilities of the enormous of Iraq, and if the goal is to protect industry The local farm is not in this way is to provide protection for the Iraqi economy. "

Image is clear that the "industry and agriculture protected by providing possibilities for its functioning and the most important electricity and exemption from taxes and labor restrictions, control and leave."

He said the picture saying, "If the goal of imposing customs duties to protect the Iraqi economy will not protect because it will lead to increased cost to the Iraqi consumer, (...) tax is a fee indirectly are downloadable on importers and this is reflected in the Iraqi consumer and thus will lead to increase prices and through want to say that the Iraqi industry require high costs. "

Image stressed that "the development of industry and agriculture should not be at the expense of the citizen, but must be programmed to provide huge potential for the purpose of reducing the cost to producers."

The Law on Customs Tariff on the repeal of the tariff number (77) for the year 1955, and ordered the Coalition Provisional Authority (dissolved) No. (54) for the year 2004 (the policy of trade liberalization of 2004), and ordered the CPA No. 38 of 2003 (Tax reconstruction of Iraq and its amendments) , and stressed that the law does not work, or any instructions or regulations conflict with the provisions of this law.

Local retailers say that the Iraqi government as soon as narrowing the movement of trucks from Syria, carrying goods as a result of the Arab summit has led to rising prices in the domestic market, wondering what this will get the government imposed a tax on importers?.

Hameed said the grave, the owner of the Karrada commercial market (Rn), "The merchants have raised this week and prices for all goods and the reason is the narrow entry of trucks into Iraq because of the actions of the Arab summit, and we fear that rising prices to levels unimaginable."

The grave, "we heard the Iraqi government's decision on the application of tariff decision next June and we tell them will bear the responsibility of higher prices in the market, without a doubt will be located on the citizen and the shoulder, but everyone will be affected."

From: Haider Ibrahim. Ts: Adham, the Open: Peace Baghdadi