September 2024: Tax Law Review & Collection System Overhaul

DINAR REVALUATION REPORT: Reviewing Tax Laws and Enhancing Collection Systems: Economic Priorities in September 2024, 6 SEPT

 Reviewing Tax Laws and Enhancing Collection Systems: Economic Priorities in September 2024

Economic discussions in September 2024 have increasingly centered around the need for a thorough review of existing tax laws and the development of more efficient tax collection systems. 1  3 These calls come from various sectors, influenced by the changing economic landscape and the desire for more streamlined governmental operations.

The Case for Tax Law Review

Addressing Immediate Concerns

The urgency to review tax laws stems from the need to address immediate concerns such as the expiration of certain tax provisions. 2 With many provisions from the Tax Cuts and Jobs Act of 2017 (TCJA) set to expire, there is a push for their extension, particularly those benefiting businesses and individuals, such as R&D amortization and accelerated bonus depreciation.

Preparing for Future Challenges

Reviewing tax laws is also seen as a strategic move to prepare for future challenges. The anticipation of expiring tax provisions, the impact of the Moore tax case, and the implementation of the global minimum-tax regime are among the issues that require careful consideration.  2 Ensuring that the tax system remains adaptable and responsive to economic changes is crucial for long-term stability.

Enhancing Tax Collection Systems

The Role of Government Efficiency

The call for enhanced tax collection systems is closely tied to discussions about government efficiency. Proposals include the creation of a government efficiency commission to audit the federal government and recommend reforms. 1 The commission would aim to identify areas of waste, fraud, and abuse, thereby saving money for the federal government.

Addressing Budgetary Pressures

The need to enhance tax collection systems is further driven by budgetary pressures. As the government faces challenges in managing its finances, improving the effectiveness of tax collection can help mitigate budget deficits. This includes ensuring that all due taxes are collected and that the tax system is fair and equitable for all taxpayers. 2

Conclusion

The economic calls to review tax laws and develop more efficient tax collection systems in September 2024 reflect a broader goal of ensuring fiscal health and economic resilience. By addressing immediate concerns, preparing for future challenges, and enhancing government efficiency, these measures aim to create a more robust and responsive tax system that benefits both the government and the taxpayers.

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.