Economic Analyst Reveals Six Tax Increase Proposals in 2027 Budget
Economic analyst Nabil Al-Marsoumi revealed today, Tuesday, six proposed fees and taxes included in the 2027 budget, while pointing out constitutional and economic concerns regarding some of these measures and warning about their impact on citizens. Al-Marsoumi explained in a Facebook post that the main proposed fees and taxes are: 1. Imposing fees on the publication and promotion of all commercial advertisements executed by celebrities and digital content creators on social media platforms. 2. Imposing fees on all agencies and websites affiliated with media entities operating in Iraq. 3. Imposing an airport fee of 25,000 dinars for each outbound travel ticket, and 10,000 dinars at all Iraqi airports and border crossings. 4. Imposing a 10% sales tax on mobile phone services and internet networks. 5. Imposing sales tax on services provided in restaurants and hotels up to the second class, cosmetic surgery clinics, beauty centers, private hospitals, veterinary clinics, sports clubs, and entertainment halls. 6. Imposing a tax on any homeowner conducting commercial activity from within their residence. He pointed out a "limited tax delegation," where Article 19 grants each minister and governor the authority to impose and modify fees under administrative controls while retaining 80% of their revenues, and Article 18 allows the Council of Ministers to adjust the income tax scale, which conflicts with Article 28 of the constitution requiring taxes and fees to be imposed by law. He also considered Article 16 First (A) as "compulsory collection," linking the completion of government transactions to the submission of water, electricity, and other bills, which means citizens' transactions may be delayed until payment of services that the state cannot consistently provide. He added that the increased burden on citizens results from the expansion of fees and levies amid the energy crisis, conflicting with IMF recommendations to provide temporary and targeted support to the poorest segments.
