DINAR REVALUATION REPORT: Enhancing Non-Oil Revenues: A Strategic Focus for the Parliamentary Finance Committee, 5 SEPT

Enhancing Non-Oil Revenues: A Strategic Focus for the Parliamentary Finance Committee

In a significant move to diversify and strengthen the economy, the Parliamentary Finance Committee convened a crucial meeting in September 2024 with the heads of the General Commission for Taxes and the General Authority for Customs. 6 The objective was to explore strategies for enhancing non-oil revenues, a critical step toward reducing economic vulnerability and fostering sustainable growth.

The Urgency for Diversification

Chairman Atwan Al-Atooni emphasized the pressing need for the economy to move beyond its reliance on oil, a dependency that has left the country's financial stability susceptible to global market fluctuations. 6 Highlighting the risks associated with a rentier economy, Al-Atooni underlined the importance of broadening revenue streams to include robust non-oil sectors.

Strategies for Revenue Enhancement

The meeting served as a platform for in-depth discussions on expanding non-oil revenues, with a particular focus on tax and customs reforms. Recognizing the pivotal role of these institutions in revenue generation, the committee aimed to outline joint procedures for maximizing income.  6

The Role of Tax and Customs Authorities

With the Central Bank selling over $200 million daily, the tax and customs authorities were identified as key actors in capitalizing on this financial flow. The committee's decision to meet with these entities underscored the potential for tapping into untapped revenue sources and optimizing existing ones. 6

Ongoing Efforts and Collaboration

Building on previous engagements with the Deputy Prime Minister, the Minister of Finance, the Minister of Electricity, and the Minister of Oil, the committee's continued meetings with ministries and agencies underscore the systematic approach to revenue enhancement. 6 This collaborative effort is crucial for aligning strategies across different sectors and ensuring a comprehensive approach to economic diversification.

In conclusion, the Parliamentary Finance Committee's proactive stance on enhancing non-oil revenues through strategic meetings with key authorities reflects a commitment to economic resilience and diversification. By focusing on tax and customs reforms, the committee is paving the way for a more stable and diversified economy, lessening the impact of global oil market volatility.