Shafaq News- Baghdad

Iraqi traders on Sunday rejected the newly raised customs duties, warning that the measures could disrupt trade and drive up prices.

In a statement, the Iraqi Association of Traders and Importers noted that the imposed tariffs undermine public interest, slow commercial activity, and disrupt the broader economic cycle, cautioning against their potential social repercussions.

Opposing any customs duties above 5%, except for locally produced items that meet domestic demand, the Association criticized the valuation system under the ASYCUDA customs platform, describing it as unfair.

“We as traders oppose the requirement to pay tax deposits in advance and the mandatory use of quality certification marks,” the statement added, urging Iraqi authorities to delay the implementation of Decision No. 957 for six months. It also called on officials to release goods held at ports, close corruption channels, and ensure regulations are applied consistently across all border points.

Earlier today, protests and market shutdowns began in Baghdad and spread to several central and southern provinces, as traders challenged new tariffs that raised import costs, disrupted supply chains, and pushed up consumer prices. The increases were introduced under Cabinet Decision No. 957 of 2025, part of government efforts to boost non-oil revenues.

Iraq’s Federal Supreme Court has scheduled February 11 to rule on a legal challenge to the tariff hike, lawmaker Mohammed Al-Khafaji noted in a video recorded outside the court building.

Read more: Explainer: Iraq’s updated customs tariffs, legal dispute, and market impact