Politics

Kurdistan Region approves first steps in tax reform

At a meeting of the Kurdistan Region's Council of Ministers on Wednesday, ministers began the process of an overhaul to the tax system in the autonomous federal region, just under a week after its parliament passed the landmark Reform Bill to curb waste and corruption in government salaries and pensions.

Mustafa Shilani 2020/01/22 18:58

kurdistan Kurdistan KRG Reform

ERBIL (Kurdistan 24) – At a meeting of the Kurdistan Region's Council of Ministers on Wednesday, ministers began the process of an overhaul to the tax system in the autonomous federal region, just under a week after its parliament passed the landmark Reform Bill to curb waste and corruption in government salaries and pensions.

In the regular meeting, chaired by Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani and Deputy Prime Minister Qubad Talabani, the council “reviewed an internal pilot project tasked with developing a new legal and auditing framework,” a framework that would update “current auditing practices and increases the transparency of the taxation system.”

According to a KRG statement, the cabinet also approved a project “designed to improve monitoring and auditing of government and private sector budgets, the facilitation of which will be supported by the Ministry of Finance and Economy.”

Prime Minister Barzani emphasized his government’s commitment to such reforms, “which will ensure fair implementation of the system and provide the government with the enhanced enforcement tools.”

As the meeting continued, “the KRG also approved the merging of the High Institute for Audits and Accounting with the Ministry of Higher Education and Scientific Research, aiming to bolster the research capabilities of both and to raise “scientific standards.”

In another segment of the meeting urged all sides to ensure the proper use of public properties and government vehicles in accordance with the governmental rules and regulations to serve the best interest of the public in the Kurdistan Region.

On Jan. 16 the Kurdistan Region's parliament passed the Reform Bill, an initiative that has the stated aim of establishing a “fair” pension system for public servants and workers.

Members of the public have long complained that they have absorbed the brunt of the region’s financial crisis over the past few years amid KRG budget shortages while high-ranking government employees and lawmakers enjoyed high salaries and lavish lifestyles.

Parliament completed the first reading of the 19-article bill in late December, after which 85 lawmakers voted to grant it an “emergency status” to facilitate its passage.

Editing by John J. Catherine