Rowaida Hussein Hassan – Economic Researcher.

Executive summary:

  • The 5% Iraq Reconstruction Tax was imposed, which contributed to the dumping of goods destined for Iraq, including consumer goods.
  • The revenues of the Shalamcheh border crossing rise to 27 trillion Iraqi dinars in 2019, and the increase indicator is likely to rise in the future; Because it represents Iraq’s window to Iranian imports, as well as visitors from Iran to Iraq.
  • There is a relationship between the economic and environmental crises that Iraq suffers from, and the volume of imports from the border crossing, for example, agricultural imports rise from the port when the crisis of desertification and water shortage spreads, as well as other climatic changes.
  • There is a need to establish special regulations for the value of the tariff imposed on each type and size of goods; To reduce manipulations and reduce the extent of rampant corruption in the country.
  • Unifying customs tariffs and subjecting them to central control, as well as activating the role of control committees; To reduce corruption and bureaucracy that lead to creating a kind of pressure and extortion, especially on perishable commodity imports upon delay.
  • Implementing highly flexible electronic programs that can respond to changes in customs tariff prices, taking into account that tariff prices do not change in short periods because of the confusion that this causes, allows for manipulation, increasing the volume of corruption, and wasting important state revenues.


Customs taxes are one of the most important sources of financing for the general budget. Because it represents one of the important tributaries of the state’s public revenues, which are used by states; To cover public expenditures, and is a means of satisfying public needs; Because it exercises multiple social, economic, service, cultural, military, and security functions. The importance of customs taxes in particular, and the tax system in general, especially in recent decades, as they represent one of the political financial tools. Interest in the tax system is increasing in various countries of the world not only because the tax is the main source of public revenue, but also because of the tax’s economic considerations at the level of developed and developing countries, which are used to direct and influence economic activity.

The importance of the funds provided by these taxes to the state’s public treasury is evident, as its importance increases not only on the political and financial level but also on the social level. This is due to its great role in achieving goals at various levels of production, consumption, distribution, and financing, as well as protecting the national product from flooding the market with imported goods, which are considered a competitor to the local product. At the Iraqi level, the importance of these taxes comes after oil in terms of obtaining the necessary revenues to supplement the state treasury, especially since Iraq enjoys many border crossings with neighboring countries, especially with Iran, and the high rate of trade exchange between the two countries; Because the Iraqi market depends on the importer to cover the demand; The failure of the local sectors to provide the volume of effective demand.

The first requirement/governance of border crossings: basic concepts of governance

The concept of tax governance is one of the newly established and developed concepts, and the result of governance, which resulted from financial crises, and economic obstacles in the world through globalization, and the separation of management from ownership; To prevent corruption, increase business oversight, and preserve shareholder rights, and with the development of globalization for banks and companies, public governance emerged, governing the responsibilities and powers of government institutions and their departments without prejudice to states, involving citizens, and increasing transparency in their actions towards citizens. Through this, the concept of tax governance emerged.