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Iraqi government considers sales tax to relieve budget crisis

Iraq is mulling the possibility of imposing a sales tax amid concerns over the consequences of such a move on Iraqis already struggling in a down economy.

The Iraqi parliament’s Finance Committee on Nov. 28 called on the government to impose a 12% value-added tax beginning in 2021. 

The call has raised popular anger and criticism as it comes during a devastating financial crisis — which is a result of the COVID-19 pandemic — and low oil prices, and amid concerns that the taxes collected are used to finance the parties and militias controlling the country.

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