More Iraqi News Late Sunday AM 10-3-21
More Iraqi News Late Sunday AM 10-3-21
TLM724 Administrator BondLady’s Corner
Tax Reform Boosts The Resources Of The 2022 Budget
Economic and banking advisor Samir Al-Nusairi Articles Sameer Al-Nusairi * Discussions, quarrels and dialogues are taking place in the economic, parliamentary and governmental circles now regarding the preparation of the 2022 budget. The Ministry of Finance and the Ministry of Planning, in coordination with the ministries and departments of the state and the governorates, are responsible for developing the final data before it is approved by the Council of Ministers and referred to the House of Representatives before mid-October, according to the Financial Management Law No. 6 of the year 2019.
Although observers do not expect the budget to be completed before the legislative elections on 10/10/2021, its approval will be delayed until after the formation of the new government and the next parliament.
What concerns us here is what the budget should include in terms of urgent reform programs and plans to activate and diversify sources of income by activating and stimulating the basic productive sectors such as agriculture, industry, etc. and increasing non-oil budget resources.
Information indicates that the government and the Supreme Committee for Economic and Financial Reform are working as we expect with the ministries Concerned parties and other parties provided that the proportion of budget revenues from non-oil resources is not less than 25%, and this means that the figures that will be included in the 2022 budget must be consistent with the goals, programs and reform projects contained in the white paper.
Since tax resources are one of the pillars of financial sustainability. Which requires taking quick and effective steps for legislative tax reform by issuing a new tax law for 40 years since the current effective law No. 113 of 1982 because one of the most important problems facing tax collection is the shortcomings in the tax system in Iraq currently in force and the tax law in force and its amendments, which did not address the variables In the post-2003 economic activity.
Technically, not to automate the tax system and the currently approved executive procedures and mechanisms, to expand the tax map and the relationship with those covered by the tax, and to find new mechanisms to reach taxpayers.
It requires the automation of tax work in a comprehensive and not partial way and the development of a special electronic system for collection in coordination with the banks operating through the central bank that ensures the accuracy of the calculation and the ease of collection without human intervention.
The abolition of exceptions and exemptions for state institutions, as well as in particular on income tax on individuals and companies, and benefiting from the process of settling employee salaries in coordination with the Central Bank and banks, and the necessity of imposing value-added tax with a tax from the consumer of no less than 5% and not more than 20% on sales of consumer goods, luxury and private services Which some segments of society acquire and obtain, as is the case in most countries.
As well as the collection of direct tax on imports, which is the tax that must achieve large revenues exceeding 10 billion dollars annually in the event that its collection is achieved accurately and directly in accordance with the desired electronic system in cooperation with the Central Bank (the window for selling foreign currency) and the customs, where the total private sector imports are estimated at about 50 billion dollars annually.
Although the imports decreased at large rates and ratios after adjusting the exchange rate of the Iraqi dinar and the decrease in the Central Bank’s foreign currency sales for several months at the beginning of 2021.
As well as imposing a direct tax according to the import lists and their quantities and the amounts of remittances and documentary credits in the foreign currency sale window in the Central Bank. Thus, this measure will prevent tax evasion.
This requires the General Authority for Taxes to cooperate and coordinate with the Central Bank and banks and to determine the responsibility of each of the parties.
The important and essential thing is the unification of tax instructions between the federal government and the Kurdistan Region and the elimination of double taxation, as it is noted that the region works independently from the federal government in tax collection according to instructions specific to the region and the private sector, as individuals, companies and banks, is obligated to pay tax rates to the region, while most of these companies Banks are taxed according to their annual budget in the center according to the tax law in force, which constitutes a clear case of double taxation in contravention of the law.
*Economic and banking consultant
Views 158 Date Added 10/03/2021 https://economy-news.net/content.php?id=26490
Significant Increase In Central Bank Sales Of Hard Currency
Economie| 02:27 - 03/10/2021 Baghdad - Mawazine News The Central Bank of Iraq's sales of hard currency, on Sunday, recorded a remarkable increase, reaching 110 million dollars.
And the Central Bank auction for the sale and purchase of foreign currencies witnessed an increase in its sales by 2.94% to reach 210 million, and 218 thousand and 319 US dollars covered by the bank at a base exchange rate of 1460 dinars per dollar.
.The purchases amounting to 159 million and 553 thousand and 700 dollars went to enhance balances abroad in the form of remittances and credits, while the remaining amount of 50 million and 560 thousand dollars went in cash.
Our correspondent indicated that 32 banks have responded to requests to enhance balances abroad, and 16 banks to meet cash requests, in addition to the participation of 22 exchange companies, and 248 mediation companies. Ended 29/A 4 https://www.mawazin.net/Details.aspx?jimare=169676
The Rise In The Exchange Rates Of The Dollar In The Local Markets
Economie| 09:55 - 03/10/2021 Special - Mawazine News, the dollar exchange rates rose in the main stock exchange and local markets in the capital, today, Sunday.
The correspondent of "Mawazine News" said that the dollar exchange rate on the main Kifah Stock Exchange in Baghdad recorded a remarkable increase, reaching 147,750 dinars, for each $100 bill.
And our correspondent added, that the prices of buying and selling the dollar in exchange companies and local markets also increased, as the selling price reached 148,250 dinars, for each paper denomination of 100 dollars, while the purchase prices amounted to 147250, for each paper denomination of 100 dollars. https://www.mawazin.net/Details.aspx?jimare=169625
Work Begins Implementing The Electronic Classification System For Companies And Contracting
Money and business Economy News – Baghdad The Ministry of Labor and Social Affairs has included more than 600,000 workers under the Social Security Law in Baghdad and the provinces, while it will start, in coordination with the Ministry of Planning and Development Cooperation, to implement the electronic classification system for companies and contracting.
Kholoud Hayran, director of the Ministry's Department of Retirement and Social Security for Workers, said, "The ministry has made a great leap in the number of workers covered by social security through the implementation of several inspection campaigns for work sites, bringing the total number of covered workers to more than 600 thousand workers in Baghdad and the provinces," according to "Morning".
She pointed out that "the ministry's plan was to activate the labor inspection department to carry out extensive inspection campaigns at various levels to increase and include workers in work sites in the private and mixed sectors and investment projects in social security."
Hiran added that "the inspection department in the department still needs a lot of support, as well as an increase in the number of inspectors to accommodate the huge number of projects to ensure the rights of workers and include the largest number of them under the social security umbrella," noting that "the Minister of Labor, Adel Al-Rikabi approved the decision of the Board of Directors."
The Fund will continue to pay a reward of 100,000 dinars until the adoption of the new law for social security and for the sake of fairness to the working class and the advancement of the living conditions of workers and the achievement of a decent life for them.
The Director of Retirement and Social Security indicated that "the department, in coordination with the Ministry of Planning, will start implementing the electronic classification system for companies and contracting, which aims to speed up the response, accuracy of information and the correctness of the issuance of correspondence between the Ministry of Planning and the Department of Retirement and Social Security for workers."
Hiran noted that "the ministry is working to adopt this system and all the advanced electronic systems that would reduce routine work procedures and thus speed up the completion of transactions in the public interest." Views 57 Date added 10/03/21 https://economy-news.net/content.php?id=26492
Open Dozens Of Files To Recover The Smuggled Money
Sunday 03 October 2021 237 Baghdad: Omar Abdul Latif The head of the Al-Nahrain Network to Support Integrity and Transparency, Muhammad Rahim Al-Rubaie, a member of the UN Convention Against Corruption Coalition, confirmed that the countries will cooperate with Iraq to extradite people accused of looting Iraq's money and smuggling it abroad.
Al-Rubaie told Al-Sabah: “The looted money conference, which was held in Baghdad last month, achieved great results, including clarification of the mechanisms and formal procedures necessary for cooperation between Arab countries to recover money and people, according to what is stipulated in Chapter Five of the agreement and the recovery of assets, money and people.”
He added, "The cooperation of these countries will be very fast, especially Jordan, Lebanon and the UAE, because there are large funds for the Iraqis in them, and there are dozens of files to recover the smuggled money, which Iraq opened to recover it from these countries."
Al-Rubaie stressed, "Iraq should expedite the opening of a sovereign fund to manage the looted money after returning it, and the task of this money is to contribute to building infrastructure projects and providing what the provinces need away from budget issues in order to save the country in two important sectors, health and education."
He explained, "There will be a major role for civil society after the elections to implement the provisions of the United Nations Convention through monitoring, accountability and advocacy campaigns to contribute to changing Iraq's rank on the Corruption Perceptions Index, which is issued annually by Transparency International."
And he continued, "The looted money conference came out with satisfactory and significant effective results that contributed greatly to Arab international cooperation with Iraq," noting that "this cooperation angered some political parties inside, as they live on looting public money." LINK
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