Iraq: New Federal Tax Law Under Study

Analysis

Iraq's Provincial Affairs Ministry has formed a panel to study the introduction of the country's first federal tax and local fees law. The law aims to avoid contradictory decisions from different provinces.

Panel

The panel, will be chaired by Torhan Almufti, Provincial Affairs Minister and will start its work next week.

The panel has been formed in line with Iraq Cabinet Decision No. 29/2012 and will include:

- Provincial Affairs Ministry members;

- Baghdad and Basra Province representatives;

- Finance Ministry; and

- the Financial Supervision Office.

Impact

Provincial boards are prevented by Iraq Cabinet Decision No. 27/2012 from imposing tax and local fees until a federal tax law is established.

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