Dr. Medhat Al-Quraishi *:. Notes on taxation and customs duties and problems faced

- POSTED ON 18/02/2016

Taxes and tariffs imposed by all countries of the world are a means to achieve economic and development goals, financial and social objectives etc mentioned in the protection of local products from foreign competition and expand domestic production and export development, as well as the financial resources of the general budget of the State expenditures as well as tshbl control and control the volume of imports for processing
The balance of trade problems.

In countries which does not possess natural resources kalarden function, for example, it relies almost entirely on various taxes and fees on the financing of expenditure and general budget in the context of the absence of developmental vision and appropriate economic policies and administrative and financial corruption rampant in all the joints of the State has deprived the country of benefiting from this important resource, which is a big problem for the economy. The effect emerged clearly after World oil prices fall as you got since mid-2014 to date which befuddled government accounts And delivers it to it's striving to secure salaries for employees and retirees and to cover the expenses of the war against terror and work on daash cover growing budget deficits resulting from lower revenues from oil exports..

To address these implications, the Government was forced to implement means to address the situation and to reduce the number of ministries and reducing salaries for the three presidencies, deputies and senior staff as well as deduct a proportion of staff salaries and retirees and some other procedures as the taxation and customs fees and others increasing as well as impose or increase fees for certain services provided by the State to its citizens. Despite our reservation policy of austerity procedures focus on vulnerable and limited income earners, who are not their capacity to withstand impact or increase taxes and fees, while still spending money altaelhali allotments and testimony and petty cash MPs, Ministers and senior grades be no austerity being suffered by junior people. This means that the financial and economic crisis are meant to be mitigated at the expense of vulnerable groups and not on the able and recipient groups larger than the status quo In the distribution of income and wealth among groups and individuals.

The problems facing the application of taxes and charges:

1. the customs duties and taxes lead to higher prices for imported goods are subject to taxes and duties in the local market, leading to opposition to the move by consumers.

2. as a result of what was stated in paragraph above, commercial interests (local and foreign) as well as some politicians knowingly or unknowingly value associated with these interests will oppose and work to block such a move because they conflict with their interests.

3. lack of efficiency and impartiality of administrative machinery responsible for guessing what tax levied funds from these taxes for getting all the public budget but go into the pockets of some corrupt individuals and mafias in various departments and State organs, organs of tax revenue we receive information that some appraisers we citizens to pay a certain amount in Exchange for reducing the amount of tax and appealing to citizens encouraged to bow ring requirement and depriving the Treasury of much of these funds.

4. There are a lot of doubts about the fate of the money levied from the border and citizens. observers revealed that finance the funds withheld taxes and fees and by setting his publication World newspaper on Tuesday February 9th of this year, which confirmed that the Parliamentary Committee of ignorant of the fate of about 1 trillion 200 billion dinar was collected from citizens in the last year because of rampant corruption in the State apparatus. Therefore, to achieve the objective of taxing citizens requires accompanied by means to ensure that the dimensions of the impact of corruption on the process and check carefully collected and delivered to the competent financial authorities.

6. with regard to the size of the corruption at the border, the Governor of the Central Bank, in response to questions from the newspaper the new published evidence on the 14th of last January that the subject of the country's major problems, and noted that the border of the country imports everything under current conditions is assumed to be the highest level of organization, efficiency and integrity, not for financial reasons but also for reasons of health, environmental, SaléMeh. The material up and penetrate the border and entering our cities and is faint or forged or changed competence and border crossings are still corrupt, however, and the dominant hand, and its loyal to goods in the border areas and some workers earn more than the State. Governor hit digital realistic examples on what is going on in these ports ' to mention. suffice it to mention here, for example, when we import 40 billion dollars we get no more than $ 400 billion dinars, or about 325 million (Talk for purses).

7. on the other hand, the question of taxation and tariffs on goods entering the border crossings in Iraq faces another problem is difficult that Kurdistan Iraq always rejected the application of commercial policy measures on the territory, although it must be as the rest of Iraq's economic and trade policy of the Iraqi State, otherwise it would cause problems and obstacles in the implementation of laws, as well asPolitical and social influences. Reports regarding the border port in Basra that importers of goods entry amtnawamn unwillingness to bear the tax on these goods at the time that don't apply this tax territory which pushes traders to enter their goods through the ports of the region to a considerable damage to the local government in Basra as well as for the general budget, as the Federal territory not hand over taxes and collect her fees to the Federal Ministry of finance. For this reason it was postponed the application of the law on customs tariff. Forasmuch then as the Federal Government was unable to impose their economic policies at all border crossing points, ahead of two solutions, either to work on the application of the law to all regions of Iraq, including the KRG or abandonment of customs taxes on Iraq as a whole.

To cope with the repercussions of this situation of the territory, the Government has announced its intention to establish a tight especially on the borders of the territory to impose duties on goods entering the territory to the rest of Iraq to obtain tax and preventing Iraqi traders seeking to avoid customs tax. such action is the weakest of faith if the State cannot impose such taxes on the territory.

While claiming the territory to obtain various gains and benefits and rights it abstains from performing its obligations from taxes and fees and oil revenues into the general budget which makes the problems existing between the territory and the Federal Government does not benefit all meetings unless these problems.

(*), An economist and University Professor

Copyright © economic network. Allow republish provided indicate the source. 18 February 2016