The occupying Coalition Provisional Authority (CPA) in Iraq has introduced a five percent reconstruction levy on most goods imported into Iraq that will be deferred until April 15, 2004.
According to a CPA press release, the implementation of a reconstruction levy will take Iraq one step closer towards independence and self-governance, by putting in place another source of revenue that is not reliant on the sale of oil.
The reconstruction levy is designed to be fair and transparent, managed by the newly-formed Iraqi Customs Service. A computer system will record data on goods imported into the country shipped by plane, train, ship or truck. Revenue generated by the levy will be collected by the Iraqi Ministry of Interior, Customs Service on behalf of the Ministry of Finance.
Under the former regime, waiting times for goods to be cleared could run as long as four – 15 days, said the CPA. With the new systems employed by the Iraqi Customs Service, waiting times should be reduced to no longer than 24 hours, and a standard fee will be instituted throughout the country.
Certain goods and organizations will be exempt from the reconstruction levy that are deemed vital to the reconstruction effort. Exempted goods include food, medicines, medical equipment, books, clothing, and goods imported for humanitarian assistance.
Organizations involved in the reconstruction of Iraq, such as foreign governments, not-for-profits, contractors, sub-contractors and international organizations will be exempt. Iraqis and persons from other countries entering the country with goods valued under 500,000 Iraqi dinars ($350) will also be exempt. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
