Iraqi Business Council President Announces Tax Reform Initiative, 7 DEC

 Iraqi Business Council President Announces Tax Reform Initiative, 7 DEC

The President of the Iraqi Business Council recently announced an impending tax reform expected to increase tax revenues to 10% of the country’s national budget. The move aligns with broader economic reforms designed to enhance the efficiency and effectiveness of Iraq’s tax system. By revising the existing tax framework, the government aims to boost its revenues without imposing excessive financial burdens on individuals and businesses.

Unraveling the Economic Roots of Iraq

Prime Minister Mohammed Shia Al-Sudani attributed many of the challenges and problems faced by Iraqi society to economic causes. He stressed the necessity of adhering to imposed fees and taxes, supporting local products without circumvention. Economic reform, with a particular emphasis on tax reforms, has been a top priority for the current Iraqi government. The Prime Minister acknowledged the complexities involved in implementing tax reforms and highlighted the discrepancy between recorded import data and the International Trade Center’s data, suggesting tax evasion of approximately $26 billion.

Reforming Tax System in Iraq: A Conference with a Mission

The conference, “Reforming Tax System in Iraq”, aims to modify tax legislation, develop tax administration, rectify the imbalance in the tax work environment, achieve tax justice, and reduce the tax burden. It will also review tax and customs policies in Iraq. The conference will consider 12 winning research papers from various fields submitted by governmental, academic, private sector companies, and international organizations.

A Global Rethink on Tax Policies

In a similar vein, Saudi Arabia will offer a 30-year tax break as an incentive for global companies that relocate their regional headquarters to the kingdom. This tax concession move follows Saudi Arabia’s introduction of rules in 2021, requiring foreign companies to establish regional headquarters in the country by the end of this year or risk losing government contracts. On a global level, the World Health Organization (WHO) has suggested higher taxes on sweetened and alcoholic beverages to promote healthier behaviors, underscoring how tax policy can be a tool for broader societal goals.

https://bnn.network/world/iraq/iraqi-business-council-president-announces-tax-reform-initiative/