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The
new tariffs that came into effect on Jan. 1 were imposed as part
of an attempt to decrease the country's debt and its reliance on
oil revenues as oil prices have dropped.
Iraq faces debt of more than 90 trillion Iraqi dinars ($69
billion) — and a state budget that remains reliant on oil for
about 90% of revenues, despite attempts to diversify.
But traders say the new tariffs — in some cases as high as 30% —
have placed an unfair burden on them. Opponents have filed a
lawsuit aiming to reduce the decision, which Iraq's Federal
Supreme Court is set to rule on Wednesday.
The demonstrators gathered outside the General Customs
Directorate Sunday, chanting slogans against corruption and
rejecting the new fees.
“We used to pay about 3 million dinars per container, but now in
some cases they ask for up to 14 million,” said Haider al-Safi,
a transport and customs clearance company owner. “Even infant
milk fees rose from about 495,000 dinars to nearly 3 million.”
He said that the new tariffs have caused a backlog of goods at
the Umm Qasr port in southern Iraq and added that electric
vehicles, previously exempt from customs duties, are now subject
to a 15% fee.
“The main victim is the citizen with limited income, and
government employee whose salary barely covers his daily living,
those who have to pay rent, and have children with school
expenses — they all will be affected by the market," said
Mohammed Samir, a wholesale trader from Baghdad.
Protesters also accused influential groups of facilitating the
release of goods in exchange for lower unofficial payments,
calling it widespread corruption. Many traders, they said, are
now considering routing their imports through the Kurdistan
region, where fees are lower.
The protests coincided with a nationwide strike by shop owners,
who closed markets and stores in several parts of Baghdad to
oppose the tariff increase. In major commercial districts, shops
remained shut and hung up banners reading “Customs fees are
killing citizens."
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