To diversify fiscal revenues coordination of services and goods taxes stimulate investment

7/2/2016 0:00

BAGHDAD - Imad Emirate
Confirmed economic academic Dr. Emad Mohammed Ali al-Ani of the Faculty of Administration and Economics at the University of Baghdad, the need for tax reform in a comprehensive manner and to move away from partial reforms by broadening the tax college Qaeda and rationalize the structure of the tax categories and dissemination of tax abatements and coordination of taxes on services with those imposed on goods.

«The taxes essence foundation in organizing the fiscal course of the state as one of the main sources of public revenues necessary to fund government spending on goods and services needed by the community to represent and seek governments to make the tax system has more efficient because of this system of importance in determining the role of the state in economic activity and life Social".

The tax base

He said al-Ani «morning» On the issue of broadening the tax base Fbalamkan find new types of taxes as well as the reform of some existing taxes including value added tax, as it is necessary to use an effective step to bring about the expansion of the tax base and that the process of the ability of this kind of tax to generate revenue, because it is imposed on consumption is forcing consumers mechanism contain (taxpayers), and therefore, the administrative cost him a relatively low compared with other types of taxes, it's also an important incentive to invest because it is aimed at the private consumer spending rather than investment spending.

He said the problem in this kind of tax that does not differentiate between income segments, it is known that low income earners are spending a large part of their income on consumption of basic goods compared with the high earners means carrying that slide burden of tax the largest for this type of tax.

He suggested Ani try to remedy that problem through the exception of some commodity groups that are frequently consumed by the owners in, that accompanied the imposition of sales on some luxury goods, depending on the internal flexibility, as happened in Southeast Asia, and many developing countries adopted a modified or more rates of value added in order to achieve justice among some taxpayers pay.

Ani confirms the continued suffering of Iraq than double the effectiveness of the tax system in place that has caused many of the imbalances, both in the structure of public revenues, or in macro-economic variables or aggravate the budget deficit and the spread of its effects on the overall economy.

Customs taxes

He stressed the need to reform the customs taxes by raising the effectiveness and efficiency of customs administration, which will enhance the success of foreign trade policies in developing exports and attract investment in the provision of appropriate customs revenues that contribute to ease the budget deficit outcome.

Reform project

Ani between the importance that is based Project customs tax reform at the head of which axes the development of customs laws in line with modern customs work systems, the global business climate and developments in response to the decisions of the World Trade Organization, calling for action on the removal of all distortions in the structure of tariffs in line with policy orientation economic, investment and trade in Iraq, stressing the need to simplify customs procedures and adopting the style of selective censorship in order to reduce the cost of economic transactions, including working to increase productivity, reduce evasion of customs.

Resource Development

Ani stressed the need to develop custom development of human resources management, staff development programs, including faddish force in international customs procedures and the expansion of the use of computers and automated information technology and the reduction of paperwork, as well as activating the taxes formerly known as »the car annual» which can car ownership generate good revenue, which is similar to the environment taxes imposed by some Western countries for environmental protection, and to continue to impose taxes on the mobile phone, which represents a good step to achieve the tax revenue from these investments.

Ani He concluded by calling for benefiting from international experiences in this field, where It proceeded on developing countries to broaden the tax base by turning it from a narrow pot of taxes on foreign trade to wider consumption and domestic spending pot, and this in itself ensures expand goods and services subject to taxation, as these countries have resorted to imposing a tax on retail.