For this reason.. Economic calls to review tax laws and develop the collection system , 6 SEPT

  Prime Minister's Advisor: 70% of the grey market

9/5/2024 Baghdad

The financial advisor to the Prime Minister, Dr. Mazhar Muhammad Salih, revealed the existence of a grey market that accounts for nearly 70% of the market or private sector activity, indicating that this percentage evades paying legal taxes.

Saleh said in an interview with "Al-Sabah", followed by "Al-Eqtisad News", that "taxes constitute in total in developed countries about (25) percent of the gross domestic product, while in Iraq they do not exceed (4) percent due to tax evasion, as the gray market, which is not known to the tax authorities, constitutes a percentage close to (70) percent of the market or private sector activity, while negative taxes, which are aid from cash income paid to the poor class, constitute (5) percent of the annual gross domestic product, and this constitutes the tax defect that compensates for the difference between the type of tax with the revenues of oil rents."  LINK

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For this reason.. Economic calls to review tax laws and develop the collection system 9/5/2024  

Baghdad  

With the increase in the size of state expenditures in the general budget, there has been talk for years about maximizing non-oil revenues, reforming the tax system in Iraq, and raising the value of taxes on the wealthy, which actually requires addressing the current laws related to taxes, controlling import operations, and preventing the smuggling of goods through border crossings.

In this regard, economic and financial expert Safwan Qusay revealed the formation of a committee by the Prime Minister’s Office to review tax laws, especially the Income Tax Law issued in 1982, noting that the law needs to be reviewed to amend some allowances in line with current income rates and develop the tax collection system to reduce tax evasion.

He pointed out that "the proposed tax increase aims to stop manipulation of invoices related to import operations and reduce tax evasion."

Qusay also confirmed that “the committee is studying introducing amendments to property and real estate taxes, especially with regard to the transfer of property between individuals.”  LINK

DINAR REVALUATION REPORT: PAYMENTS RELATED TO THE IQD ARE ROLLING OUT!!!, 6 SEPT

 PAYMENTS RELATED TO THE IQD ARE ROLLING OUT

Summary

Reports indicate that payments related to the Iraq Dinar are rolling out, generating excitement about potential currency revaluation. Stay grounded and informed!

Highlights

• 🚩 Payments are reportedly starting for Dinar holders.
• 💡 Legislative discussions are underway for amending Iraq’s Investment Law.
• 📈 Iraq’s currency is now compliant with international standards.
• 🏦 Central Bank talks with the US Federal Reserve show positive results.
• 🧘‍♂️ Experts advise staying calm amid excitement over potential revaluation.
• 🗣️ Importance of individual research and due diligence emphasized.

Key Insights

• 📊 Payment Reports: Many sources claim payments are being rolled out, hinting at potential currency exchange opportunities soon. Verification remains essential.
• 🏛️ Investment Law Amendments: Changes to the Investment Law are crucial for Iraq’s economic progress, reflecting increased investment activities.
• 🌍 Compliance with Forex: Iraq’s currency is now compliant with international trading standards, paving the way for broader acceptance in global markets.
• 🔄 Central Bank Collaboration: Ongoing discussions with the US Federal Reserve may enhance Iraq’s banking stability and international relations.
• ⚖️ Caution in Excitement: While news is promising, experts recommend maintaining a grounded approach until more concrete evidence is available.
• 🌐 Importance of Research: Viewers are reminded to conduct personal research and seek professional advice before making financial decisions.

FRANK26….9-6-24……NEXT WEEK

Top 5 Oil & Gas Laws in Iraq 2024

DINAR REVALUATION REPORT: Five Oil and Gas Laws & the Production-Sharing Contracts are in Parliament: Iraq 2024

 Five Oil and Gas Laws in Parliament: Iraq 2024

As of September 6, 2024, the Iraqi Parliament has been actively involved in the management and regulation of the country’s oil and gas sector, focusing on drafting and amending laws to govern the industry effectively. 1  3  5

Key Laws in Focus

1. Kurdistan Oil and Gas Law No. 22/2007 (KOGL)

The Kurdistan Oil and Gas Law No. 22/2007 (KOGL) has been a cornerstone of the Kurdistan Regional Government’s (KRG) approach to managing oil and gas resources. Established after the adoption of the current Iraqi Constitution in 2006, the law aimed to empower the KRG to develop and utilize the substantial oil and gas reserves within its semi-autonomous region. Following the law’s enactment, the KRG signed over 50 production-sharing contracts (PSCs) with international oil companies (IOCs), marking a significant shift in the region’s participation in the oil sector.  1

2. Law of Identifying and Obtaining Financial Dues to the Kurdistan Region of Iraq from Federal Revenue (Law No. 5 of 2013)

This law establishes the legal framework for addressing outstanding revenue issues between the KRG and the federal government of Iraq, setting out mechanisms for defining and obtaining financial dues owed to the Kurdistan Region since 2004. It authorizes the KRG to sell oil produced in the region to recover unpaid revenues and includes provisions for the KRG’s share of sovereign expenditure revenues and compensation for damages inflicted by the former regime. 2

3. Proposed Amendments to the Kurdistan Region Oil and Gas Law

In June 2022, the Kurdistan Parliament made its first amendments to the Oil and Gas Law of the Kurdistan Region - Iraq, adjusting Article 4 regarding the Kurdistan Region Council on Oil and Gas Affairs. The amendments included adding a sixth member to the council and introducing a new paragraph concerning the council’s meetings and voting system.  5

4. New Oil and Gas Bill

Talks between the KRG and the Iraqi government in August 2023 aimed to draft a new oil and gas bill to resolve the dispute over the Kurdistan region’s constitutional rights on oil and revenue. The bill is intended to address the governance of oil and gas resources in both federal Iraq and the Kurdistan region. 4

5. Moratorium on New Oil and Gas Contracts

The Oil & Energy Committee of Iraq’s parliamentary body is seeking to halt the signing of any further oil and gas contracts until the passing of two key pieces of legislation. This move could impact the Oil Ministry’s plans and delay the country’s oil sector development. 6

Impact and Considerations

The ongoing legislative efforts in Iraq’s Parliament reflect the complex dynamics within the country’s oil and gas sector. These laws and proposed amendments are crucial for addressing revenue distribution, contract rights, and the role of international oil companies in the region. The inclusion of production-sharing contracts in the new oil and gas bill is particularly significant, as it could influence the future of the industry and the jobs it supports. 

Five Oil and Gas Laws in Parliament, 6 SEPT

 Five Oil and Gas Laws in Parliament

9/5/2024 Baghdad

The subcommittee on legislation and laws in the oil and gas sector within the parliamentary oil committee continues its efforts to update the laws related to this important sector, with the aim of improving the investment environment in Iraq. 

Member of the Oil and Gas Committee and head of the subcommittee, Ali Shaddad Al-Fares, said in an interview with “Al-Sabah” followed by “Al-Eqtisad News”, that “the committee has five laws and legislations related to the oil and gas sector, including the refineries or liquidation law, regarding which more than one meeting was held.” 

He pointed out that "the law is now in the General Secretariat of the Council of Ministers to proceed with amending it, so that there will be greater privileges for investors in the refining and petrochemicals sector to enter Iraq."

Al-Fares continued, "The draft law on smuggling petroleum derivatives needs some amendments, as does the law on hydrocarbon wealth," noting that "there is what is called the general law system in the management of the Ministry of Oil, in addition to 70 decisions of the dissolved Revolutionary Command Council that need legal adaptation to cancel some decisions and convert others into laws, as some of these decisions are still effective and important and must be legally adapted."  LINK

HERE'S WHY IRAQI NEWS PLATFORMS CALLS IQD INVESTMENT A SCAM BY SANDY INGRAM, 6 SEPT

 SANDY INGRAM

HERE'S WHY IRAQI NEWS PLATFORMS CALLS IQD INVESTMENT A SCAM

Summary

The Iraqi Dinar’s potential for revaluation is questioned, citing economic instability, currency supply, and lack of government plans for significant changes.

Highlights

• 🌍 Vast quantity of dinars limits potential appreciation.
• 💼 Iraq’s economy is fragile, reliant on oil exports.
• 📉 Historical revaluations rarely match dinar promoters’ claims.
• 📊 Central Bank denies major revaluation plans.
• 🔍 Market forces will determine dinar’s value.
• ✈️ Travel to Iraq is currently not allowed.
• 💰 Investors face uncertainty in the dinar market.

Key Insights

• 🚫 The oversupply of Iraqi dinars hinders any substantial appreciation, making high revaluation unlikely. This reflects a broader concern about monetary policy effectiveness.
• ⚖️ Iraq’s heavy reliance on oil exports makes its economy vulnerable, with political instability further complicating foreign investment opportunities.
• 📖 Historical context shows that significant currency revaluations usually occur under specific conditions, highlighting the unrealistic expectations of dinar promoters.
• 🏦 The Central Bank’s consistent denial of major revaluation plans signals a cautious approach to maintaining economic stability rather than speculative gains.
• 📈 Market forces will dictate the dinar’s value, emphasizing the need for a more stable economic environment to attract investments.
• 🚷 Current travel restrictions to Iraq limit investors’ direct interaction with the market, raising concerns about the dinar’s accessibility and future prospects.
• 🔄 The concerns about dinar circulation suggest that a more manageable currency supply could lead to a gradual appreciation, albeit with significant uncertainties for investors.