Iraq Economic News And Points To Ponder Sunday Evening 7-13-25

Tax Bowl Restoration
 
Economic 2025/07/14   Abdul Zahra Muhammad Al-Hindawi  Ironically, globally, the  nations that pay the highest taxes are the ones that enjoy the most luxury living, and the  economies of those countries are the  most resilient and   least affected by the economic shocks that strike the world.  Among those countries, for example, are (Finland - Japan - Denmark - Netherlands - Sweden - Austria - Belgium...etc.), as those countries impose high taxes on their citizens, approaching the barrier of (60 percent).

What is striking is that you do not find any grumbling or discontent with the process of paying taxes.
 
Everyone is subject to the tax system, and there are no exceptions,  because they are ultimately reassured that what they take out of their pockets (taxes) returns to them as services in the field of health, education, social security, and other things.
 
This reduces the burden of the tax on people’s shoulders! And whoever evades paying taxes quickly finds himself behind bars.
 
This was almost the fate of Real Madrid coach Ancelotti, who faced a prison sentence of (4) years, due to hiding part of his income from the Spanish tax authorities.
 
In contrast, countries that  do not impose taxes (zero) or  impose them at low rates, with the exception of the State of Qatar, have a fragile economy, and  their people often suffer from a low level of services.
 
Iraq is among the countries that impose a low tax rate,   with an income tax rate of 15 percent. 
Our tax system faces many challenges and problems, which have resulted in its ineffectiveness.
 
Despite the existence of Income Tax Law No. (113) of 1982 and its amendments,
which is considered one of the best laws,
 
Iraq is considered one of the countries that suffers from  tax evasion, or rather, fraud against the tax authorities.  Some of this fraud may be with the knowledge of some of those authorities.
 
Therefore, we find that the amount of tax revenues achieved is still low,compared to the  size of the huge monetary mass circulating in market and commercial transactions, as well as with the expansion of the size of economic activities and the growth of investment companies in all fields, in addition to recording a clear improvement in the level of per capita income, in light of what  the street is witnessing of the large number of cars, buildings and investments.
 
This is in contrast to the fact that the state is still spending huge sums of money on
     consumer services, such as electricity, health, education and infrastructure,
 
in light of the great difficulties facing the general budget, as a result of the limited revenues,
which oil still leads by a far margin over other economic activities.
 
Therefore, it is necessary to restore the tax base by reconsidering the mechanisms of this system. 
We must promote a culture of paying taxes as a duty that must be fulfilled.

Otherwise, penalties await those who evade or refuse to pay, and   their fate will be similar to that of Ancelotti.    https://alsabaah.iq/117356-.html 

The Value Of Gold In Iraq's Precious Metal Reserves Has Increased.

Economy |  07/13/2025  Mawazine News - Baghdad -  The Central Bank of Iraq revealed on Sunday an increase in the value of gold in Iraq's foreign currency reserves.

The bank said in an official statistic that the value of gold in Iraq's foreign currency reserves amounted to 22.492 trillion dinars by April, a 5.62% increase compared to March, when the value of gold amounted to 21.228 trillion dinars.

It added that the value of gold also increased by 17.72% compared to December 2024, which amounted to 17.834 trillion dinars, an increase compared to December 2023, when the value of gold amounted to 12.293 trillion dinars.

It is noteworthy that the Central Bank had previously revealed that Iraq's foreign currency reserves at the end of April amounted to 98.089 billion dollars, equivalent to 127.516 trillion dinars. https://www.mawazin.net/Details.aspx?jimare=263754

Dollar Prices Remain Stable In Baghdad

Economy | 05:59 - 07/13/2025  Mawazine News - Baghdad -  The dollar exchange rate against the dinar witnessed a noticeable continuation this evening, Sunday, with the closure of the two main stock exchanges.
Selling was 142,000 dinars for every $100.  Buying was 140,000 dinars for every $100.
https://www.mawazin.net/Details.aspx?jimare=263766

Governmental move to develop electronic payment systems and financial inclusion

July 12, 2025  Iraq intends to enhance its readiness in the field of digital economy technologies.
Baghdad - Al-Zaman  The government is moving towards developing electronic payment systems and financial inclusion in Iraq, through the implementation of several decisions to promote electronic payments.

A government source said in a statement yesterday that, “Since the government assumed its duties more than two and a half years ago, the importance of establishing a strong and effective banking system and increasing financial inclusion has become clear to it.”

Pointing out that "this goal is among its main priorities, as it is one of the main goals in the strategies of countries around the world, given its close connection to the stability and growth of the economy," he said.

Digital Transformation

The source explained that "the government has taken a package of decisions and measures through the Council of Ministers and the Ministerial Council for the Economy, in addition to the committees emanating from them, which include representatives from the government, the Central Bank, and the private sector, to follow up on this matter."

He added that these committees included monitoring the performance of electronic payment, stimulating electronic payment and financial inclusion, digital transformation, and evaluating digital transformation and electronic payment processes in ministries and government institutions.

The digital transformation rate for ministries and local institutions rose to approximately 32 percent, up from less than 18 percent in 2022, representing a growth rate of 78 percent.

A specialized source stated in a statement followed by (Al-Zaman) that (the number of bank accounts reached about 20 million accounts, compared to 8 million accounts in 2022, with a growth rate exceeding 150 percent, and the number of bank cards also rose to 21-22 million cards of all types, credit, debit and prepaid, after it was 16 million cards in the same year, giving a growth rate of 38 percent).

Indicating that the number of point-of-sale devices reached about 62,000 devices, after it was less than 10,000 devices in 2022, with a growth of up to 520 percent.

The number of ATMs reached approximately 7,531, up from 2,223 in the same year, with a growth rate of 239 percent.

The source continued, "Total electronic payments reached approximately 1.37 trillion dinars per month during the current year, while they were less than 90 billion at the end of 2022, with a growth rate of 1,400 percent."

Data indicates that "the financial inclusion rate in Iraq has reached approximately 40 percent, up from less than 10 percent in 2019." Prime Minister Mohammed Shia al-Sudani recently issued a package of future decisions related to a number of important projects in the field of electronic payments, stressing the need to complete them as soon as possible.

The source stated yesterday that (the projects include activating the local card, which is expected to be completed by the end of this year, activating rapid payment, operating the unified electronic collection application, localizing private sector salaries, and establishing a unified center for complaints related to electronic payment transactions at the National Data Center).

The source explained that (the implementation of these projects contributes to moving Iraq to a new stage among the developed countries in this field).

In a related context, Iraq achieved a new digital achievement by advancing in the Information and Communications Technology Development Index (ICT) for the current year, recording 78.4 points compared to 73.9 points last year, according to the annual report of the International Telecommunication Union.

This remarkable progress reflects the efforts of the Ministry of Communications in developing the digital infrastructure and improving the quality of internet services provided to citizens, as part of Iraq's efforts to enhance its digital readiness and keep pace with the global digital transformation path.

Noticeable Improvement

A statement received by Al-Zaman yesterday stated, “This achievement confirms Iraq’s determination to keep pace with the global digital transformation path, which constitutes a pioneering model towards strengthening its position in digital economy technologies, in a way that serves to support innovation and sustainable development.”

 It pointed out that “the ministry is proceeding at a rapid pace, which reflects the noticeable improvement in its digital readiness.

” The statement added, “This advancement is the result of the ongoing efforts under the supervision of the Minister of Communications, Hiyam Al-Yasiri, which focused on the importance of developing the digital infrastructure, expanding access to internet services, and improving the quality of services in the field of communications and technology.”

The IDDI index is one of the most prominent international indicators globally adopted to measure the extent of development of the communications and information technology sector, as it relies on indicators of the level of digital use and skills.   LINK

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