Monday, February 14, 2011

Iraq Taxes ~ The Iraqi government to freeze tariffs indefinitely for fear the possibility of skyrocketing prices

14/02/2011

The Iraqi government to freeze tariffs indefinitely

The Ministry of Finance and the Deputy Minister, it is convinced of the need to postpone a law tariff new, which stoked fears of skyrocketing prices, said a government committee is currently examining the possibility of suspending taxes on imports, noting that the House of Representatives is the only one who can decide to do so.

With attributed parliamentarians freeze to "Boiling People in Iraq was", he stressed an economic expert on the importance of this law for the advancement of national industry and considered bending government is a natural matter due to the pressure and sent to it from the media, stressing that there is no way to move the wheel of development but to impose fees on import.

Iraq plans to early March (March), the next application of the new tariff law which would impose an import duty on thousands of goods at rates ranging between 5 to 100%, after 8 years of exclusive "tax ages" simple.

In a statement to "the world," said Undersecretary of the Ministry of Finance Dr. Fadel prophet "a committee was formed to consider the possibility of applying the customs tariff law in a timely manner agreed upon, or the possibility of postponing its application for a specific period."

He said the prophet of the "Select the time limit for this period for decision by the Ministerial Committee, and may be the delay for a few months or go on for a full year, and will make recommendations of this Committee to the Cabinet within a week and then Council of Ministers submits its recommendation to the Council of Representatives, which has the exclusive authorities in the disabled laws or postponed."

And the reasons for freezing is expected to import tax, "said Undersecretary of the Ministry of Finance," We such as the Ministry believe that the application of tariff law needs to be consulted by the merchants and businessmen, importers, and take their time enough to know the details of this law and how to deal with. "

He adds, "We believe that it should be postponed for a given period and specific to this segment to be fully informed of its details, and be dealt with smoothly and without causing any confusion."

The prophet adds, "I think that the tariff law fair to all segments of society, in particular, that he took into account all the elements of suitability for a private citizen, especially consumer goods and medicines."

Under the new tariff, they have accounted for "weapons of fishery," the highest tariff tax (100%), followed by alcohol and alcoholic beverages that prevent the sale recently (80%), while the cigarette tax of up to 50%.

The law Pfsolh which exceeded ninety, to impose a tariff of 40% of the crop onions and tomatoes.

In turn, the President of the Economic Committee in the House of Representatives Ahmed al-Alwani, "that Iraq needs a disciplined application of the customs tariff, and shall have the financial returns through the tax goes to the Treasury, and the tariff is one of the alternatives in Iraq, which its economy depends on oil exports."

But al-Alwani, corrects that "Iraq is not immune to boom People in the region as a result of deteriorating economic conditions and living," he adds, "So there were calls from politicians and Congress to see if you could delay the application of this law for a period or modify, or reduce the percentage."

He added: "In my capacity as Chairman of the Committee to call you for a meeting with members next week to discuss the possibility of applying this law in light of current circumstances or the possibility of changing the law in a manner consistent with the current reality."

Alwani and continues his speech for "the world" by saying "when the application was raised tariff law went out many reactions around the door and contain the crisis was to postpone its implementation immediately."

In the opinion of the Iraqi deputy that he "will wait in its application, especially as the region is boiling and the street can be raised at any moment and in any manner, and we are determined to be all our legislation to serve the people and we do not need any new problems."

While acknowledging the need for legislation such a law to diversify the state revenues that depend on oil just like the nations of the world, says al-Alwani, "must be our steps parallel and equal with respect to legislation tariff law to protect domestic products or work to promote local industry through the provision of infrastructure appropriate for the advancement in both the industrial and agricultural, but a deliberate pace so as not to fall into the problem because of this matter."

He concludes his speech the President of the Economic Commission for "the world" to disclose "the existence of a genuine desire, and members of the committee of politicians, parliamentarians, either by reducing the rate of tariff on importers to maintain the level of prices or delay the law for some time."

In the meantime, consider the economic expert and deputy director of the Central Bank of Ahmed Rehn's decision to freeze tariffs "natural" because of the pressures faced by the media and political circles, indicating that the lack of awareness of the government's position difficult.

Rehn and stresses the "world" that "there is a political problem in Iraq, but the problem is that society is not aware of the requirements to be industrialized countries, and when you put these requirements do not buy it."

He adds, "We can not rise to the industrial sector with higher prices for production at home and declining prices for imported, so it is to breathe life into the national industry in need of surgery."

He also points out that "the government will have to postpone the tariff law because of the failure of economic awareness in Iraq, which is reflected in the other backward political stance as well."

He continues by saying "I do not want to bear the costs of manufacturing in Iraq despite the fact that high prices will be a one-time, but the community will not tolerate this increase Rieia as a society, do not want that there will be industrial development."

Rehn believes that "there is nothing wrong that the government proceeded to postpone the tariff law under public pressure may result in later, and this is normal and happens in most countries of the civilized world."

But he goes on, stressing that if Iraq wanted to industrial development "must be at the expense of

Consumer, and if we want to benefit of the consumer must not forget that industrial development and this government

The other ten governments after a thousand years, will not be able to develop happy consumer and industry at a time".

http://www.babnews.com/inp/view.asp?ID=34886