Iraqi Finance Ministry proposes putting taxes on salaries amid high dollar prices

Economy 03:44 PM - 2021-04-16

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Iraq's Ministry of Finances proposed applying and implementing tax laws on salaries beginning from this month, and a member of the Iraqi Parliament's Finance Committee said on Friday: "It is the government's decision and parliament cannot interfere, but this decision will make citizens carry what they cannot bear."

 

Shirwan Mirza, MP of the PUK bloc and member of the Finance Committee in the Iraqi Council of Representatives, told PUKmedia: "The parliament cannot intervene in the decision unless the law is returned to the parliament for amendments."

 

"Putting taxes on the salaries of employees and salaries is another burden on the citizens and a bad decision, especially in the current situation after the dollar prices have hiked against the Iraqi dinar," he said. 

 

In a recent letter signed by Finance Minister Ali Allawi, the Iraqi Finance Ministry has proposed to the Secretary-General of the Council of Ministers to implement the 2007 financial law number 1 and to put taxes on the monthly income to put the decision into effect beginning from this month.

 

For its part, the Ministry of Finance issued an explanation on Friday in which it stated that the decision is the implementation of the provisions of Article 34, Paragraph (C) of the Budget Law.

 

Adding that the proposed tax does not include the lower classes, and the Council of Ministers has the power to cancel it.

 

Iraqi people are already suffering financially after the government conducted a currency devaluation by 20% in December last year which raised exchange rates of the dollar against the Iraqi dinar and hence the cost of the most basic needs of the people raised.

 

 

 

PUKmedia