Shafaq News– BaghdadIraq’s parliament convened on Saturday to reviewnon-oil revenues set out in the federal budget, as debate intensifies overtaxes and their effect on trade.Shafaq News correspondent reported that the sessionopened under newly elected Speaker Haibet Al-Halbousi after quorum was reachedwith 209 of 329 lawmakers in attendance.MP Ibtisam Al-Hilali of the State of Law bloc toldShafaq News that lawmakers are scrutinizing revenue from taxes, fees, andcollections, with plans to question the heads of the Border Ports Authority,the
General Commission for Taxes, and the General Authority of Customs onborder management, tax enforcement, and the rollout of the ASYCUDA digitalcustoms system.The review, she added, will assess the system’s effecton the dollar exchange rate and food prices, alongside a cabinet decisionimposing new levies on vehicles, goods, services, electronics, medicines, andother imports, noting that duties reaching 30% have already slowed marketactivity.According to an official document, lawmakers have also begun gatheringsignatures to overturn the caretaker cabinet’s Decision No. 97 of 2025 on newtax measures, arguing it violates Article 28 of the constitution and theCustoms Tariff Law by imposing or altering duties without parliamentarylegislation, rendering the move legally invalid.The debate follows steps by the caretaker governmentof Prime Minister Mohammed Shia Al-Sudani to introduce a 15% customs tariff onluxury goods starting in early 2026 and tighten standards for importedvehicles, measures that have raised prices and drawn public criticism.Trade through the Trebil border crossing in westernAl-
Anbar province with Jordan has sharply declined after the Iraqi tariffincrease. Speaking to Shafaq News, Rutba district mayor Imad Al-Rishawipreviously said duties rose by up to 15%, cutting daily truck traffic from morethan 200 to about 10. Many traders have rerouted shipments through KurdistanRegion crossings, where the increases do not apply.Economist Manar Al-Obaidi, head of the Iraq FutureFoundation for Economic Studies and Consultations, warned that the new importrules could drive inflation higher. He also pointed to the tax deposit systemintroduced through ASYCUDA at entry points, saying it could further strainmarkets and reduce purchasing power.: Iraq’s delicate maneuver: Boosting revenue without crushing consumer power