Government decisions ignite public unrest: market strikes and rejection of increased customs tariffs.
Government decisions ignite public unrest: market strikes and rejection of increased customs tariffs.
2-9-2026
The recent decisions of the caretaker government have sparked outrage among the business community and the general public. Merchants, importers, and shop owners have halted their operations in protest against the government’s recently approved increase in customs tariffs. Protesters emphasized that the 30% tariff hike will directly impact citizens and consumers, making them the primary victims of these measures. The
Iraqi public has reacted strongly against these decisions, with shop owners closing their businesses and declaring a strike. Simultaneously, demonstrations were held in front of the General Authority of Customs, demanding the reinstatement of the previous tariff.
In this context, MP Miqdad al-Khafaji, from the Rights Movement, stated in a post followed by Al-Maalomah, that “the new customs tariff does not represent economic reform, but rather constitutes psychological warfare that drains citizens’ income and pushes food and industrial goods towards the Kurdistan Region’s ports, thus weakening federal port revenues.”
Al-Khafaji stressed the need for the Parliament to take a clear stance regarding these decisions, which increase the burden on citizens without offering any real solutions.
For his part, Aqeel al-Ta’i, an advisor to the Baghdad Chamber of Commerce, told Al-Ma’louma that “the new customs tariff system suffers from fundamental problems in its implementation mechanisms and timing, which has negatively impacted market activity and commodity prices, with citizens bearing the brunt of the additional financial burdens without any alternatives or effective protection for their purchasing power.”
Al-Ta’i added that “large sums were suddenly imposed on commercial containers at Iraqi ports, leading to increased import costs and creating confusion among traders and importers.” He explained that “the price increases will be widespread and sudden, affecting food and basic consumer goods, given the lack of genuine market oversight and the absence of a clear policy to mitigate the shock.” He warned that “continuing to operate under these mechanisms may push some traders to reduce imports or resort to the black market.”
In the same context, economist Dr. Safwan Qusay explained to Al-Maalomah that “increasing customs duties will provide the government with revenues that could reach $5 billion after the new system is implemented,” noting the possibility that the next government could allocate $1 billion to subsidize a number of essential commodities directly related to citizens.
Qusay indicated that “the next government can subsidize wheat, cooking oil, rice, meat, and other basic materials through the hypermarket system, which will ensure control over the informal market,” stressing that “the market will not witness a sharp change as long as the dollar is still sold to importers at a rate of 1300 dinars.” However, he pointed out that there is price inflation under the pretext of not controlling some border crossings, which leads to a doubling of the increase, which requires the Ministries of Trade and Planning to tighten oversight and prevent price manipulation.
almaalomah.me
