BACKDOC: THE FOLLOWING IS QUOTED FROM THE LETTER OF INTENT PUT OUT IN JUNE. AS YOU KNOW THEY HAVE BEEN FOLLOWING THIS TO THE TEE!
THIS IS THEIR PLAYBOOK SO TO SPEAK.
WHAT SEEMS TO BE OF INTEREST HERE AND WE WILL WAIT TO SEE HOW IT GETS PLAYED OUT OF COURSE BUT IRAQ WILL NEED TO BE IMPLEMENTING BROAD PERSONAL INCOME TAXES ON ITS CITIZENS AS WELL AS IMPLEMENTING TARIFFS AND TAXES.
THIS IS SUPPOSED TO BEGIN ON THE END OF THIS MONTH!
WITH THAT SAID IT BEGS THE QUESTION AS TO WHAT BENEFIT IT WOULD HAVE TO THE GOVT. IF THERE IS NO SERIOUS REVENUE TO TAX?
ALSO HOW WOULD THE CITIZENS BE ABLE TO FINANCIALLY TOLERATE IT? MMMM
FOOD FOR THOUGHT.
HOPE TO SHARE MORE ON DIGITAL WHEN I GET TIME!
DOC IMO
“Revenue Reforms
In order to strengthen revenue, the government will implement the following measures:
Broaden the tax base of wages. The Council of Ministers approved a decision to include all salaries and wages of non-military government employees above grade 2 including base salary, supplemental pay, bonuses, overtime and any other allocations (excluding allocations for wife and children), in the taxable base (PA, Table 5).
This decision is expected to yield additional tax revenue of ID 0.3 trillion in 2016 and ID 0.6 trillion in 2017 when it will be implemented for the full year.
Audit the financial statements of the Development Fund for Iraq and Successor Account 300/600 at the CBI to check that all oil revenue reaches the treasury and monitor the use of the resources deposited in that account.
The Ministry of Finance will continue to have all the transactions moving the balance of its foreign exchange account 300/600 at the CBI audited by an international audit company every six month and will post the audit reports on its external website within six months after the end of each audited semester (SB, Table 5).
Conduct diagnostics of the tax and customs codes to simplify them and broaden the tax base. The Ministry of Finance will, by end-September 2016, prepare tax policy measures to increase tax and customs revenue, with technical assistance from the IMF and the World Bank. Such measures could
The government will not resort to the accumulation of arrears to finance the deficit. It commits include the introduction of a value added tax6 or sales tax, a personal income tax on pension earners, excise taxes, … . The government will introduce tax policy measures to increase non-oil tax revenue in the 2017 draft budget.
Conduct diagnostics of the tax and customs administrations with a view to modernize them and broaden the tax base, with technical assistance from the IMF, the World Bank, the World Customs Organization, and the United Nations Conference for Trade and Development (UNCTAD).
The Ministry of Finance will, by end-December 2016, propose a strategy to strengthen the tax and customs administration, with technical assistance from the IMF and the World Bank. The Customs Administration will, by end-August 2016, propose a strategy to implement the UNCTAD ASYCUDA information system in its administration.”
