Not saying it means RV but they cant buy local stuff. Its not like if you want to buy a made in Iraq hammer you can. Everything is imported for the most part. They have no manufacturing base.
And that is following along with my point....since there is not a huge amount of in country manufacturing, taxing imports and making them more expensive will promote in country growth and dependance to provide cheaper goods.
Its a way to also increase jobs/decrease unemployment and get more money flowing within the citizens themselves.....it will help their economy recover and diversify its GDP.....
Part of the agreement to get Iraq reinstated back ino the WTO was to have a tariff deal in place.
Parliament knows given the unemployment & povert levels it must act fast to improve the purchasing power of the ordinary Iraqi without sinking their own economy.
It's all about timing. The debit cards are issued & loaded. Under GOI all will share the oil wealth.
Inflation will destroy the economy especially a 50% tax at a time Iraq needs investments to rebuild. Investors won't invest.
A RV or sudden increase in purchasing power will solve all the above.
Theey will be paying more for almost everything. Right now Iraqis are dependant on foreign imports for almost everything & will be fore decades to come untill they start building & manufacturing at home by Iraqi owned corporations.
No it wouldnt.....a sudden RV and huge jump in purchasing power would actually make inflation worse if you cant offer a larger amount of goods and services to match.....you cant put the horse before the cart
A RV is not a fix all to a countries problems.....again with influencing a higher price of goods that are imported, its gonna promote business and create jobs within the country because manufacturing goods in-country will be cheaper. It will broaden Iraqs economy and the goods and services that are provided....