Iraq Orders Advance Deduction of Taxes and Customs Duties on Foreign Transfers

INA

An Iraqi port.

Iraqi Prime Minister Ali al-Zaidi has directed that taxes and customs duties owed on foreign financial transfers be deducted in advance, with the measure taking effect on 1 September 2026.

A document issued by Secretary-General of the Council of Ministers Hamid al-Ghazi, obtained by PUKMEDIA, said the directive was approved during the Council of Ministers’ 13th regular session on 6 August 2026.

The measure aims to safeguard public funds, prevent waste and ensure the proper management and use of state resources, the statement noted.

Under the directive, outstanding taxes and customs duties will be deducted and held in trust funds starting 1 September. The relevant authorities have been instructed to implement the measure accurately and in accordance with the directive.

The move comes as the Iraqi government seeks to increase non-oil revenues amid heightened security tensions in the region and growing instability around the Strait of Hormuz, which have affected oil exports and Iraq’s oil revenues.



PUKMEDIA