IMF urges Iraq to impose internal taxes to cover the budget deficit

IMF urges Iraq to impose internal taxes to cover the budget deficit

SUNDAY, MARCH 15 / MARCH 2015 14:22

IMF urges Iraq to impose internal taxes to cover the budget deficitTwilight News / International Monetary Fund urged the Iraqi government to impose internal taxes to fill to cover the deficit in the country’s financial budget for the current year instead of relying on funding from the banks and the Central Bank of Iraq.

A statement of the Iraqi Ministry of Finance reported for “Twilight News”, the meeting was held between Iraq and the International Monetary Fund within the framework of regular consultations which are held twice a year to exchange views on the Iraqi economy and financial policies of the country.

Participated in the meeting of the Iraqi side and the Ministers of Finance, Hoshyar Zebari, and oil Adel Abdul Mahdi and Governor of the Central Bank of Iraq and the Office of Financial Supervision and representatives of other ministries.

Representatives of the International Monetary Fund in satisfaction with the adoption of the budget in 2015, and the realism of the Iraqi reality, but they stressed the importance of reducing and rationalizing expenditure Alladharorah and prepare for fiscal adjustment in the future.

Bank representatives also urged to work to reduce the funding of the banking system and the Central Bank of Iraq and work to increase the internal revenue taxes and property tax public on sales and corporate income tax and improve the performance of the tax and customs.

Iraq acknowledged the current year’s budget at the end of January last value of 119 trillion Iraqi dinars and a deficit of $ 25 trillion.

Iraq and complains about a financial crisis due to the loss of oil prices to around 50 percent of its value in six months and to increase military spending because of the war on “Daash.”

Representatives of the World Bank also made recommendations to the Iraqi government is to reform the subsidy system, and the system of the modern and the energy sector and the restructuring of state-owned enterprises as well as the reform of social protection system service.

According to Iraq’s financial statement, the meeting concluded with a number of conclusions represented the continuation of the government and the Ministry of Finance to adopt a proactive approach in the face of the crisis and the preparation of a financial plan for the public and to maintain the independence of the Central Bank.