Economy

KRG received 796 billion Iraqi dinars of income from taxes in 2021

An Iraqi man sells nuts in the old bazaar in Erbil, the capital of the northern Iraqi Kurdish autonomous region, on February 10, 2021. (Photo: Safin Ahmed/AFP)
An Iraqi man sells nuts in the old bazaar in Erbil, the capital of the northern Iraqi Kurdish autonomous region, on February 10, 2021. (Photo: Safin Ahmed/AFP)
Kurdistan KRG tax income Masrour Barzani Krg

ERBIL (Kurdistan 24) – The reorganization of the tax system by the Kurdistan Regional Government’s (KRG) ninth cabinet has led to a dramatic increase in tax income, with the government receiving 796 billion Iraqi dinars (approximately $5.5 million) in taxes in 2021 alone. 

KRG incomes from taxes during the past ten years per billion Iraqi dinars, 2021. (Infographic: Mabast Bahaden/Kurdistan 24)
KRG incomes from taxes during the past ten years per billion Iraqi dinars, 2021. (Infographic: Mabast Bahaden/Kurdistan 24)

Since taking power in 2019, Prime Minister Masrour Barzani’s ninth cabinet was able to more than double the income from tax from 308 billion IQD (approximately $2 million) in 2018 to 627 billion IQD (approximately $4.3 million). 

Read More: Kurdistan Region approves reorganization of fees, taxes and activation of electronic revenue system

However, in 2020 the KRG tax income decreased to 578 billion IQD (approximately $3.9 million) due to the COVID-19 pandemic. 

Read More: Kurdistan temporarily exempts tourism sector from taxes to offset COVID-19 losses

Just under half (49 percent) of the KRG’s $5.5 million tax income in 2021 came from Erbil province, while 27 percent of it came from Sulaimani province and the remaining 25 percent from Dohuk province. 

KRG tax income per province, 2021. (Infographic: Mabast Bahaden/Kurdistan 24)
KRG tax income per province, 2021. (Infographic: Mabast Bahaden/Kurdistan 24)

The vast majority of the $5.5 million, 72 percent, came from taxes imposed on companies and border gates, while 16 percent of it came from taxes on private residential properties. Taxes on commercial shops and small businesses amounted to 10 percent, while the remaining 2 percent came from taxes on public residential properties. 

KRG sources of tax income, 2021. (Infographic: Mabast Bahaden/Kurdistan 24)
KRG sources of tax income, 2021. (Infographic: Mabast Bahaden/Kurdistan 24)

There are 24,169 companies and 415,445 shops and other small businesses in the Kurdistan Region that pay taxes to the KRG. At least 1.410 million residents in the autonomous region also pay property taxes to the government. 

Infographics by Kurdistan 24 Graphic Designer Mabast Bahaden

Dler Mohammed ,