Specialists: Activating the tax system is more beneficial than deductions of employees' salaries

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5/11/2017 12:01:00 AM

Baghdad, Baghdad

With the adoption of the budget of 2017 and the adoption of the government austerity policy and the imposition of taxes on state employees, did not calm the feelings of resentment and criticism in various popular and economic circles, and with the return to reduce the proportion of those deductions from 4.8% to 3.8% for reasons that are still so vague, despite Of the increase in oil imports according to the high oil prices compared to what was estimated in the budget law for the current year, describes economic specialists, those steps without deliberate, and not only "tickle the emotions of the people" means the start of the race for the election, The citizen is the victim of every financial hardship Or deficit in the budget, while not subject to taxes businessmen and contractors who have large incomes, and this in itself a big mistake.

According to economic expert Salama Smisem in an interview with (Al-Mada), the deductions of salary rates and then the cessation of deductions, is one of the steps that have not been subject to study and economic planning, follow up: which clearly indicates the imbalance in how to issue economic decisions, The most ominous of the justification given to those decisions, wondering whether it is reasonable to stop the deductions is due to the improvement of the financial situation of Iraq because of high oil prices ,? Are we in "Alwa" to sell vegetables, we sell and receive money to go to salaries and wages.

"If so, how can we offer to borrow from the World Bank, and the last of these loans was a few days before the above decision," she said. "All this indicates that the policy of" tickling the emotions of the people "has already begun. Pre-emptive propaganda preparatory to the elections and nothing else, explaining: The matter here has nothing to do with the performance of the economy as they claim.

The economist pointed out that this economic policy, especially with regard to the effects of loans and their economic consequences, which will be paid by the next generation and their children will be dire. Significantly, we are working according to the principle of "pay what is in the pocket brings you what is in the unseen", a concept that does not serve the Iraqi economy and the citizen in the long term "He said.

After the parliamentary finance committee in previous statements, the financial budget for 2017 sent by the government to the House of Representatives included deductions from the salaries of employees and retirees, after the budget in 2016 3%, has become in the budget of 2017 4.8%, according to the Committee, the paragraph deduction 3 And the remaining 1.8% of the deduction is added to the other expenses, "and it does not know where the money goes 1.8% of the intermittent, re-announced on 27/4-2017 the need to deduct the salaries of employees as approved in the general budget for the year Due to the rise in international oil prices Voting on reducing the rate of deduction of state employees from (4.8%) to (3.8%).

On the other hand, the economic expert in the name of Antoine, in an interview with (extent), unfortunately, that whenever there is a financial crisis or budget deficit, the government resort to borrowing or deductions, and was supposed to expand the tax container. But it is not at the expense of the employee and this is a big mistake, but it must be at the expense of entry that is not taxable. Continuing: When we want to apply the system of deductions to expand the tax base must be those who do not pay taxes, such as businessmen and contractors, who do business and have a large entry but not subject to taxes.

Antoine said: There are direct and indirect taxes and the citizen in all cases is the victim of decisions to apply direct and indirect taxes, there is very little category covered. Mirdafa: In contrast, there is a failure to provide inaccurate statistics on those covered by the tax system and not covered.

According to specialists, the budget of 2017 included the rate of deduction and taxes on the simple citizen, which means that there is a problem facing the decision-maker in cases that relate to increasing the burden on citizens, such as raising subsidies or reduce salaries or impose new taxes, which comes for several reasons including The miserable achievements and corruption of previous governments.

The House of Representatives voted on 24-10-2016 during its 25th session of the Legislative Chapter for the third legislative year on the adoption of the Budget Law 2017, worth more than 100 trillion dinars and a total deficit of more than 21 trillion dinars.