KRG taxes agriculture products imported from Iraq

ERBIL, Kurdistan Region (Kurdistan24) – The Kurdistan Regional Government (KRG) Ministry of Agriculture has decided to impose a tax on some products imported from Iraq, a Department official said on Sunday.

Abdulstar Majid, KRG Minister of Agriculture and Water Resources, announced the decision during a press conference.

“KRG has previously imposed a tax on imported products that are already being produced in the Kurdistan Region,” he stated.

Majid said that the tax system has worked effectively, for the past two years, but products imported through Iraq were unable to be taxed.

The KRG Minister added that the his Department is aware that imposing a tax on goods within a country is unusual.

“We are 100 percent sure that the products massively imported from Iraq to the Kurdistan Region are not Iraqi products but are imported from Iran free of tax,” Majid declared.

He added that the new tax will allow local products to compete in the local markets.

In May, the Ministry of Agriculture and Water Resources announced that “agricultural products have increased,” despite Kurdistan not receiving its share of the budget from Baghdad for the past two years.

The Ministry added it had contributed to the revenue of the Region since the implementation of the protection of local products policy.

According to the Ministry of Agriculture’s data, the department has been contributing 10 percent to Kurdistan’s national budget.

“If the KRG provides more support and funding this rate will increase to 30 percent of contribution in revenues for the government,” Majid concluded.

Editing by Karzan Sulaivany