IMF Calls on Iraq to Reform Tax System

A source in the outgoing Iraqi government has said that International Monetary Fund (IMF) stressed the need for Iraq change its tax system as a condition for granting loans and supporting projects.

A member of the Iraqi negotiating team, Fadel Muhammad Sarraj, told AKnews that “the IMF demanded the Iraqi government formally to restructure the tax system”.

“The IMF has criticized the report handed to the Iraqi negotiating committee over distributing the budgets operation of the previous years which focused on financing the security services as unstudied mechanisms.”

“The Iraqi negotiating team was able to convince the states member in the IMF that Iraq will abide by the loans payment by selling crude oil over the coming years.”

“The IMF agreed on Friday to grant an amount of $741 million as part of a loan of $ 3 billion and $ 700 million.”

“The IMF has a vision that Iraq is completely isolated from the global system and that made it demand the government to promote the value of the Iraqi Dinars compared with the foreign and Arabic currency.”

The Fund has paid to Iraq $1.2 billion out of  the $3.7 billion.

It is hoped that the outgoing Iraqi government will discuss the budget for 2011 in the next few days.

(Source: AKnews)

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