Al-Sudani: Most of Iraq's challenges have economic roots

Shafaq News / Prime Minister Mohammed Shia Al-Sudani stated on Wednesday that most of the challenges and problems faced by Iraqi society have economic roots, stressing the importance of adhering to imposed fees and taxes without circumvention to support local products.

During the launch of the Tax System Reform Conference, Al-Sudani highlighted that the current Iraqi government's top priority within its year of existence has been economic reform.

He emphasized that this priority emerged from a realistic assessment of the problems and challenges confronting Iraqi society, with most stemming from economic origins.

Al-Sudani addressed tax reforms, acknowledging initial difficulties in their implementation, and noted that tax reforms under the government's approach send a "significant message" to local and foreign investors, companies, and international organizations, demonstrating the administration's commitment to revamp the business environment, reform systems and legislations.

The Prime Minister urged the conference to deliver recommendations aimed at eradicating the "extortion" perpetrated by "weak-minded" individuals, referring to those exploiting the system.

Additionally, Al-Sudani noted the disparity between recorded import data, stating that according to the Central Statistical Agency, imports totaled $16 billion, contrasting with the International Trade Center's data of $42 billion for 2022.

This discrepancy implies that approximately $26 billion evaded tax payments, resulting in significant financial revenue losses and adverse effects on various industrial, commercial, and agricultural sectors, hindering developmental projects, according to the Prime Minister.