“The home safe” is the citizen’s alternative… Government taxes and bank manipulation drive Iraqis to hoard.
“The home safe” is the citizen’s alternative… Government taxes and bank manipulation drive Iraqis to hoard.
1-22-2026
Information/Report…
As Iraqis await a political breakthrough to end the current stagnation, signs of a potential legal confrontation between Parliament and the caretaker government over fees and taxes have emerged, coinciding with a widening trust gap between citizens and banking institutions. Parliamentary and economic warnings have sounded the alarm against attempts to impose financial burdens outside the constitutional framework, at a time when Iraqis prefer to hoard their money at home rather than deposit it in government banks accused of manipulating contracts.
A parliamentary veto: No taxes without legislation.
MP Alaa al-Haidari issued a strongly worded warning against any attempt to impose new taxes or fees without going through Parliament. Al-Haidari confirmed to Al-Maalouma that any financial decision issued by the caretaker government lacks constitutional legitimacy, considering it an overreach of authority.
Observers believe this stance is based on a solid constitutional foundation, as the Iraqi Constitution restricts the power of tax collection to the legislative branch. Al-Haidari stressed that any attempt to impose financial burdens “behind Parliament’s back” would be met with firm rejection, emphasizing the need to protect citizens’ direct income from any illegal “governmental interpretations” under the current circumstances.
State-owned banks: “One-sided” contracts are driving depositors away.
On a parallel front, economist Salam al-Zubaidi revealed a “structural flaw” in the relationship between state-owned banks and their citizens. Al-Zubaidi pointed to increasing complaints about banks unilaterally altering the terms of agreements with depositors, leading to a decrease in agreed-upon profits and a loss of confidence in the public financial sector.
In a statement to Al-Maalomah, al-Zubaidi explained that these ill-conceived measures have had serious repercussions on the country’s cash liquidity, exacerbating the phenomenon of hoarding money outside the banking system. He indicated that approximately 87 percent of the circulating currency, amounting to nearly 95 trillion dinars, remains outside banks. He added that citizens’ reluctance to deposit funds has deprived banks of their ability to lend and provide financing, causing a standstill in the investment cycle and directly impacting overall economic activity.
Analysts
assert that the combination of “threats of illegal taxes” and “alteration of deposit contracts” is forcibly pushing Iraqi citizens into the “shadow economy.” Citizens who fear having their savings depleted by “business transaction” fees will not trust banks that fail to deliver on their profit promises.
Experts are calling for urgent measures to restore confidence, starting with strict adherence to agreements signed with depositors and the activation of financial transparency, moving away from the “financial surprise” policies practiced by some executive bodies.
almaalomah.me
