Al-Kazemi suspends the Finance Book on the tax withholding of employee salaries

Al-Kazemi suspends the Finance Book on the tax withholding of employee salaries

20/4/2021 15:22

Al-Kazemi suspends the Finance Book on the tax withholding of employee salaries[Baghdad-Where]
Prime Minister Mustafa Al-Kazemi suspended the book issued by the Ministry of Finance regarding taxation of state employees’ salaries.
The Minister of Finance, Ali Allawi, recently sent an official letter to the General Secretariat of the Council of Ministers demanding that taxes be deducted from the total monthly income as of April, with retroactive effect, so that the deduction includes salaries for January, February and March.

Allawi’s book sparked parliamentary and popular controversy and rejection, while the Parliamentary Finance Committee called on him to “withdraw from this decision, otherwise it will be forced to host it and then question him soon” in the House of Representatives.

For its part, the Ministry of Finance affirmed that “it applies the law in paying tax on all income, including the nominal salary and allowances, and the exemption obtained from the Council of Ministers was exceptional.”

She pointed out, “The proposed tax withholding does not include the lower classes, and the Council of Ministers has the power to cancel it.”

alliraqnews.com