Iraq Reports 22% Growth in Tax Revenues

Iraq’s Higher Committee for Tax Reform has announced a 22-percent increase in tax revenues, reaching IQD 4 trillion [$3 billion] in 2024, as the country moves towards digitising its tax system to address name duplication issues and improve efficiency.

According to state-run Iraqi News Agency (INA), Khalid Al-Jabri, a committee member, stated that tax revenues for 2024 amounted to IQD 3.755 trillion, reflecting improved tax policies, enhanced collection efficiency, and streamlined administrative procedures.

It said key factors behind this growth include:

• Reduced corruption and faster transaction processing.

• Incentives such as penalty and interest waivers, encouraging taxpayers to settle outstanding dues.

Upcoming Digital Reforms:

• Resolving name duplication issues through a new digital system.

• Launching an online tax inquiry system, allowing taxpayers to check their financial status without visiting tax offices.

• Making corporate tax data electronically accessible to government agencies, improving transparency and investment processes.

Al-Jabri acknowledged longstanding challenges, including tax evasion and bureaucratic inefficiencies, which have hindered revenue collection. The new financial automation system aims to:

• Minimise human intervention in tax assessment and collection.

• Reduce irregularities in the tax process.

• Establish a more transparent and efficient tax framework.

He described these reforms as a major shift in Iraq’s tax administration, fostering trust between the government and taxpayers while laying the groundwork for broader economic reforms.

(Source: INA)