Iraqi Dinar Guru News Highlights (8/26/24)

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.

Al-Jawahiri comments on the tax reform process, 26 AUGUST

  Al-Jawahiri comments on the tax reform process

Development and investment consultant Amer Al-Jawahri said: “The tax reform process currently taking place includes all the empty sectors, and this is very accurate for the Prime Minister in light of Al-Sudani’s meeting with the Supreme Committee for Tax Reform.”

Al-Jawahri Al-Jawahri told Mawazine News Agency: When we say that the state’s public funds and resources have circulated, this means that there is an informal economy in the country. 

According to the development expert: “Informal businesses have existed for many years, and they still do, and there is even an expansion that is not included in tax accounting, which means that it is not registered, and is considered informal in this matter, and the other side of the tax reform will take place and will continue.”

He explained: “The use of digital electronic tools and others that exclude human interaction means that perhaps 80 or more than 90% of the work that is accomplished outside the scope of human interaction will be linked. This may save losses. We do not want to pay the numbers, but it is very clear that the losses of the numbers are very large; which took into consideration the size of imports.

He continued: “If we count the size of imports, how much do we earn from tax money? There is a gap in this aspect, and eliminating corruption is not easy, and corruption is not only about the leakage of money and loss, which means depriving the public right of its rights and at the same time the money goes into pockets, and people get rich at the expense of society.
 
He pointed out: "This money goes to services, but at the same time, this achieves, in one way or another, the rule of law, and also achieves, a relative improvement in the business environment, and this improvement when added to it, an improvement in other aspects, while he stressed that working on it in the business environment, then, we can say, there are things that encourage local capital for direct investment.

He  continued saying: "May we be drawn into it, and attract capital or foreign direct investment, this is the entrance or angle that I want to enter from the side of what the Iraqi government aspires to.

 Al-Jawahiri urged everyone to support the tax reform process despite the existence of harsh and severe opposition, veiled and covered with large veils and beautiful veils, which will try to put obstacles in front of the implementation of tax reform, which increases with the country's resources or the general budget. Improving public resources means that the state and successive governments are able to spend on improving the service reality and infrastructure of the country, the most important of which are the health, education, security and municipal sectors. link

LATEST FROM JON DOWLING, 26 AUGUST

 JON DOWLING

Not much going on in Iraq right now. CBI Allaq who resigned is going to Washington to ask for the sanctions to be lifted. We wait on Israel to do their Dubai strike, while everything else happens. 

@JonDowling

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NELSON CHAMISA

WE’RE A GREAT PEOPLE…A people of politeness and hospitality. Our DNA as a people is excellent. We are blessed with many endowments. If we could just get our politics right and get our nation to be born again. We have everything. We have a unique God-given gift of resources-the human resources, the natural resources, the material resources and the

@Godisinit

spiritual resources. #JustImagine If we could come together, pull together and walk together, the world will see a WINNING NATION and SHINING COUNTRY on the African continent and beyond. Blessed Friday #JustImagine #NewDawn #Godisinit

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This is the latest update we can find from Nelson Chanisa concerning Zimbabwe. Nothing official has come out yet regarding the elections. As soon as it’s official, we’ll let you know accordingly. 👆🏻👆🏻

@JonDowling

IRAQ'S NEW INDUSTRIAL LAW

DINAR REVALUATION : Approval of Industrial Investment Law in Iraq: An Overview, 26 AUGUST

Approval of Industrial Investment Law in Iraq: An Overview

On Monday, August 26, 2024, the head of the Parliamentary Investment Committee, Muhammad Al-Zayadi, announced that the final touches had been put in place to approve the Industrial Investment Law within the House of Representatives. 1 This significant development marks a crucial step towards strengthening the industrial sector and attracting more foreign direct investment (FDI) in Iraq.

Economic Context and Objectives

The approval of the Industrial Investment Law comes at a time when Iraq is seeking to diversify its economy and reduce dependence on oil revenues. 2 The country is aiming to enhance economic growth by fostering a more conducive environment for industrial activities and private sector development.

Key Provisions of the Law

The Industrial Investment Law is designed to address several key areas to stimulate economic growth and industrial development. It includes provisions to streamline investment procedures, provide tax incentives for industrial projects, and facilitate access to land and financing for investors. 3

Streamlining Investment Procedures

The law simplifies administrative processes for investors, reducing bureaucratic hurdles and improving the ease of doing business in Iraq. This is expected to attract more foreign and domestic investors to the industrial sector.  4

Tax Incentives

To encourage investment in industrial projects, the law offers tax exemptions and deductions for a specified period. This is aimed at making industrial ventures more financially viable and attractive to potential investors. 5

Access to Land and Financing

The Industrial Investment Law facilitates access to land for industrial purposes and provides support for financing industrial projects. This includes measures to ensure that investors can secure land rights and obtain financing from local and international sources. 6

Expected Impacts

The approval of the Industrial Investment Law is anticipated to have several positive impacts on the Iraqi economy. By providing a more favorable environment for industrial activities, the law is expected to: Boost economic growth and diversification Increase employment opportunities in the industrial sector Enhance the competitiveness of Iraqi industries in the global market Encourage FDI and foster private sector development

Conclusion

The final approval of the Industrial Investment Law in Iraq represents a significant milestone in the country's efforts to strengthen its industrial sector and attract more foreign investment. With streamlined procedures, tax incentives, and improved access to land and financing, the law is poised to contribute to economic growth, diversification, and job creation in Iraq.

Finalizing the approval of the Industrial Investment Law, 26 AUGUST

  Finalizing the approval of the Industrial Investment Law

Today, Monday, the head of the Parliamentary Investment Committee, Muhammad Al-Zayadi, revealed that the final touches had been put in place to approve the Industrial Investment Law within the House of Representatives.  

Al-Ziyadi told Al-Ma'louma Agency, “Approving this law will contribute significantly to moving the wheel of the Iraqi economy, as it grants great privileges and guarantees to investors in the industrial sector.” 

He added, "His committee held an expanded meeting with the Economic Committee to resolve the disputed points within the law," noting that "the law, if approved, will reflect positively on the labor market by providing many job opportunities for young people within the country."

He continued, “His committee has put the final touches to approve the industrial investment law soon in the House of Representatives, as it is one of the important laws.” link