KRG Opposes Baghdad Tax Suspension on Imported Poultry

ERBIL (Kurdistan24) - The Kurdistan Regional Government's Ministry of Agriculture and Water Resources on Sunday formally opposed the federal government's decision to suspend taxes and customs duties on imported eggs, chicken and meat, warning that the measure could undermine domestic production and put tens of thousands of jobs at risk.

Rizgar Hamad, an adviser to the ministry, said during a press conference that the decision issued by the federal government on Oct. 8 could have serious consequences for the Kurdistan Region's poultry sector.

"We express our concern over the decision issued on Oct. 8, 2026, concerning the suspension of taxes on imported eggs and frozen chicken," Hamad said. "The decision will have negative consequences."

He said Begard Talabani, Kurdistan Region Minister of Agriculture and Water Resources, had sent two formal letters of protest to Iraqi Prime Minister Ali Faleh Zaidi and the federal agriculture minister.

According to Hamad, Talabani also informed Kurdistani blocs in the Iraqi Parliament about what the ministry considers the risks created by the decision.

The ministry argues that lowering barriers to imported poultry contradicts its strategy of strengthening food security and relying more heavily on domestic production.

Hamad also said the measure conflicts with mechanisms previously agreed with Baghdad regarding the agricultural calendar.

"The decision runs counter to the development of the agricultural sector and the Kurdistan Regional Government's strategy for food security and reliance on domestic production," he said.

The ministry based much of its objection on the scale of the Region's existing poultry industry.

According to figures presented by Hamad, 59 egg-production projects produce more than four billion eggs annually, while domestic demand is around one billion eggs.

In the poultry meat sector, more than 2,100 projects produce over 450,000 tons of chicken annually, compared with demand of approximately 150,000 tons.

The ministry therefore says the Kurdistan Region is not only self-sufficient but has substantial surplus production that could be supplied to other Iraqi provinces.

It warned that removing or suspending taxes on imported products could flood the domestic market, reduce prices received by local producers, create financial losses for poultry farm owners and threaten tens of thousands of jobs.

Instead of facilitating additional imports, the ministry called on Baghdad to support feed suppliers and poultry farms and make it easier for the Kurdistan Region's surplus production to reach markets across Iraq.

The federal government has presented a different rationale for its decision.

Prime Minister Zaidi ordered the temporary suspension of taxes and customs duties on imported eggs, chicken and meat on Oct. 8 as part of efforts to stabilize food prices and keep essential products affordable.

The measure followed a sharp change in Iraq's exchange rate.

The Council of Ministers and Central Bank raised the official dollar selling rate to 1,520 dinars on Oct. 6, weakening the dinar and contributing to market volatility.

The parallel-market price of $100 subsequently rose above 165,000 dinars, increasing pressure on the prices of imported goods and other essential commodities.

The federal government's decision was therefore intended to limit the impact of higher import costs on consumers.

The Kurdistan Region's Agriculture Ministry, however, argues that protecting consumers should not come at the expense of an already established domestic industry.

The dispute reflects two competing priorities: Baghdad's effort to contain short-term food-price increases and the Kurdistan Region's concern that cheaper imported poultry could weaken local production.

The ministry's formal position is that greater support should instead be directed toward domestic farms and the removal of barriers preventing the Region's surplus poultry and eggs from reaching other Iraqi markets.