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Forthcoming meeting between Baghdad and Erbil for the application of the customs tariff law in all outlets

December 27, 2015   Our economy / Baghdad

The economic and investment commission parliamentary announced a joint meeting, soon, between the federal government and representatives of the Kurdistan region to apply the law of customs tariff in all border crossing points.

Said committee member Rep. Najiba Najib said in a statement seen by corrosive of our economy news that “the Parliamentary Committee in connection with a joint meeting of the ministries of planning and finance, industry and the interior of the central government and the Kurdistan Regional Government to implement the collection of customs tariffs and increase fiscal revenue for the state.”
She noted that “2016 general budget approved by Parliament includes commit the government to apply the customs tariff as one of the laws in force and applicable.”

She added: “The main problem encountered in the collection of customs tariffs according to the law, relating to non-state control of all border crossings.”

He continued: “The most traders importers resort for the supply of goods to the local market through these ports.”

She noted that “there are border ports under the control of the government are not taken to the application of the customs tariff in the absence of political will.”  LINK

Enorrste   If they apply the tariffs then the cost of goods will go up inside Iraq since Iraq imports the vast majority of its products.

​The tariffs will help the GOI in terms of getting them more money, but at the cost of higher prices for the people.

Unless they also raise the value of the dinar in sync with the introduction of tariffs this will lead to inflation in Iraq.

Therefore one of two things will happen:  they will either postpone the tariffs or they will institute the float with the introduction of tariffs.  Time will tell.