The import sector in Iraq is a major contributor to the country’s economy. Imports account for a large percentage of the country’s GDP and are a major source of foreign exchange. Iraq’s imports are mainly from the United States, China, Turkey, India, and other Middle Eastern countries. Imports include consumer items, industrial goods, and raw materials. Iraq also imports food products, machinery, and vehicles. 

The import sector is an important part of the economy and has been a major contributor to the country’s growth. The sector has helped to diversify the economy and has provided employment opportunities for many locals. The import sector has also helped to improve the infrastructure and has provided a much-needed boost to the economy. If you intend to participate in the Iraqi import industry, you must first understand the related taxes and other charges. Continue reading to find out more about these levies and other topics.

Import taxes in Iraq 

Iraq is a country that has a variety of tolls that are necessary for the country to generate revenue and protect its domestic industries. These tolls are essential for the country to fund its public services and infrastructure. It is important to understand the different types of import taxes in Iraq to ensure that businesses are compliant with the relevant laws and regulations.

Custom duty

The most common type of toll in Iraq is Customs Duty. This is a tariff that is imposed on imported items and is based on the value of the items. The rate of Customs Duty can vary depending on the type of goods that are being bought.

Value added tax

In addition to the duty, Iraq also imposes a Value Added Tax (VAT) on bought items. This is a tariff that is based on the value of the goods and is charged on top of the duty.

Excise 

The Excise Tax is a tax that is imposed on certain types of items, such as tobacco and alcohol and is based on the quantity of the items that are being imported. 

Special tax 

The Special Tax is a toll that is imposed on certain types of goods, such as luxury items, and is based on the value of the items.

Import tax rates 

Import taxes are based on the value of the goods being brought in. The rate of taxation is determined by the type of goods being imported, with some items being taxed at a higher rate than others. For example, luxury goods, such as cars and electronics, are taxed at a higher rate than necessities, such as food and clothing. Additionally, the government has imposed several restrictions on the importation of certain goods, such as weapons and alcohol, to protect the safety and security of the country.

The general tax rate is 5%. This rate applies to most things bought, with a few exceptions. For example, cars and machines are exempt from the tariff, as are food, oil, and chemicals. Household electronics are subject to a reduced rate of 2%. 

Laws regarding import taxes

The current regime has taken a significant step toward establishing a secure and prosperous economy by enacting two customs laws. The first is Law No. 23 of 1984 (Customs Law), which is a detailed document outlining tariffs, practices, and customs management. The second legislation, Law No. 22 of 2010 (Customs Duty Policy), includes timelines of names and standards of items subject to customs duties.

These two laws provide a solid foundation for the regulation of imports and exports. The laws also provide a clear framework for efficient customs administration and compliance with international trade rules.