DINAR REVALUATION UPDATE: Development Consultant Amer Al-Jawahiri's Insights on Tax Reform, 26 AUGUST

Development Consultant Amer Al-Jawahiri's Insights on Tax Reform

In August 2024, development and investment consultant Amer Al-Jawahiri offered his perspective on the ongoing tax reform process in the country1. Al-Jawahiri highlighted that the reforms encompass all sectors, emphasizing the Prime Minister's attention to the topic following a meeting with the Supreme Committee for Tax Reform1. This meeting indicates a comprehensive approach to addressing tax issues and enhancing fiscal stability.

The Significance of Tax Circulation

Al-Jawahiri told Mawazine News Agency that the circulation of public funds and resources signifies the presence of an informal economy within the country 1. This informal economy plays a crucial role in the financial landscape, affecting the effectiveness of tax reforms and the overall economic health of the nation.

Tax Reform and Economic Development

The tax reform process is seen as a critical step towards economic development and investment. By addressing the informal economy and ensuring that resources are channeled effectively, the government aims to strengthen the public sector and promote a more stable economic environment1.

Challenges and Opportunities

1. Investment in Oil and Other Resources:

Al-Jawahiri stresses that relying solely on oil without strategic investment can lead to economic instability 2. He advocates for the investment of oil revenues and other resources, such as customs revenues and taxes, to stimulate economic growth rather than increasing taxes and burdening citizens2.

2. Agricultural and Rural Development:

Encouraging a return to rural areas with planned projects, agriculture, and animal husbandry can revitalize the countryside and boost economic activities2. However, this requires strategic planning and capital investment to ensure feasibility and sustainability2.

3. Government Appointments and Projects:

The consultant warns against government appointments without corresponding projects, which can lead to an overabundance of underutilized personnel2. This highlights the need for a balanced approach to employment and project development2.

Conclusion

Amer Al-Jawahiri's comments on the tax reform process underscore the complexities of fiscal policy and its impact on economic development. By addressing the informal economy and promoting strategic investment in various sectors, the country aims to achieve a more stable and prosperous economic future1.