Disclosure of a reason why it is not allowed to impose deposits on what the Central Bank sells
Disclosure of a reason why it is not allowed to impose deposits on what the Central Bank sells
06/19/2020 12:26
Baghdad today – Baghdad
Member of the Parliamentary Finance Committee, MP Faisal Al-Issawi, on Friday (19 June 2020), set a legal condition for imposing deposits on what the Central Bank sells in hard currency.
Al-Issawi said in an interview with (Baghdad Today), that “imposing deposits of 5% on what the central bank sells of hard currencies comes within the doors of solutions to the financial crisis, but it needs to be amended in the law of the central bank and tax together.”
He added: “I do not expect that there will be a possibility to amend any of the central bank and tax laws at this critical time.”
The deputy, Mohamed Shiaa Al-Sudani, had suggested imposing deposits of 5% on what the Central Bank sells of money, as one of the means that alleviates the financial crisis, while he indicated that going in this direction would save billions per month.
According to the proposal submitted by the Sudanese, “the importer will have to leave 5% of the amount he buys from the central bank in dollars, for import, before returning the amount to him after bringing in receipts proving his payment of taxes and customs duties.”
He added: “We have a solution imposed by the government of Abadi , which was going through the same current circumstances to offset salary deductions, a tax of 5 % on the dollar amount sold in the auction of the currency, which go for imports.”
He pointed out that “this measure we implemented for a period of 45 days, and we obtained in the government of Abadi, 500 billion dinars, which is equivalent to deductions for employees monitored in the government of Mustafa al-Kazemi.”
Iraq suffers from a financial crisis, which was experienced by the new Corona virus pandemic, which caused the suspension of economic activities and low oil prices globally, which made Iraq, at times, heading to cut the salaries of employees and retirees, and another that drew attention to internal or external borrowing.
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