Iraq Lifts Foreign Currency Curbs in Free-Trade Zones

Published June 27th, 2000 - 02:00 GMT

Iraqi authorities have lifted curbs on foreign currency dealings inside the country's two free trade zones where company and income taxes have also been scrapped, a newspaper reported on Tuesday. 

Al-Ittihad weekly said the measures were designed to encourage investment in the Fleifil zone, 420 kilometers (255 miles) north of Baghdad, and in Khor Zubair on the Gulf in the southern province of Basra. 

Companies in the zones will be authorized to open foreign currency bank accounts and their profits will be exempted from taxes. 

Salaries will also be tax-free and allowed to be transferred abroad, unlike in the rest of sanctions-hit Iraq, which opened the zones in 1999 in an effort to create jobs and revive the economy. 

Imported goods and raw materials for the zones will be free of customs, said Al-Ittihad. 

Iraq has been under economic sanctions since its 1990 invasion of Kuwait - BAGHDAD (AFP) 

 

© 2000 Al Bawaba (www.albawaba.com)

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