08 March 2018 Iraqi Government issues 2018 Federal Budget The Iraqi Parliament passed its 2018 Budget Act (the Budget) on March 3. The Budget includes several measures to support economic growth and fiscal stability as Iraq recovers after the 2017 military defeat of the Islamic State of Iraq and Syria (ISIS) and the drop in global oil prices. One significant measure is the proposal of a 5% sales tax to apply to the sale of all consumer goods, except items sold as part of Iraq's ration card system and services provided by beauty salons for men and women. However, it is not yet clear if the Iraqi Government will in fact implement the proposed sales tax on consumer goods or if it will release regulations on its application. Furthermore, the Budget does not provide a date from which the proposed sales tax regime will apply. Document ID: 2018-0525 |
