Time for the RV/ GCR #IraqiDinar #DINAR

Time for the RV/ GCR

Iraq Advances Tax Reform to Boost Non-Oil Revenues and Investment

Prime Minister Mohammed Shia Al-Sudani opened Baghdad’s Tax Conference for Economic Development, stressing that sustainable growth depends on diversifying Iraq’s economy beyond oil and creating a fair, investor-friendly tax system aligned with global standards.

Geopolitics & Economy
Al-Sudani underlined that Iraq cannot remain dependent on oil, pointing out that the state budget of about 150 trillion dinars annually brings in only 3 trillion from taxes—a stark imbalance. The government aims to align tax regulations with international norms, a move that reassures investors and positions Iraq more competitively in the global market.

Banking & CBI Angle
Tax reform is part of the wider economic restructuring agenda, complementing monetary reforms by the Central Bank of Iraq. The government is pushing for digitalization of tax collection—electronic payment vouchers, online inquiry platforms, and automated matching systems—measures that mirror the CBI’s own push toward transparency and digitization in banking.

Non-Oil Revenues & Tax Progress
Non-oil revenues have doubled as a share of GDP—from 7% in 2022 to 14% in 2024. Tax receipts rose 26% year-on-year in 2024, with an additional 3% growth in the first half of 2025. The government vows not to impose punitive tax hikes but to expand revenues through fairness, efficiency, and investor confidence. The upcoming income tax law reflects international standards, supports green and start-up projects, and protects low-income earners.

Conclusion
Iraq’s tax reforms send a clear signal: the country is moving toward a diversified, rules-based economy. By reinforcing transparency, fairness, and digital efficiency, Baghdad is creating fertile ground for investment, strengthening non-oil revenues, and laying the foundation for long-term stability.

Iraq is building a fair, transparent tax system to attract investors and strengthen non-oil revenues — a pillar for long-term stability.