37 replies to this topic

[Adam Montana]

NO, TAX ON IMPORTS MEANS THE PEOPLE BRINGING TO GOODS TO IRAQ ARE TAXED, NOT THE IRAQI PEOPLE

Ummmm. Don't you realize that taxes on goods means higher purchase price?

Thanks for saving me the time.

Raising taxes on ANYONE causes a trickle-down effect and in the end, it is you and I that pay more. The importers aren't going to suddenly take a loss when taxes raise - they will raise their prices.

[amal]

Seems that this is simply a way for them to get its citizens to buy more local goods, and taxing imported items, making them more expensive to buy. The more people that rely on the local economy, the stronger it will get.

Its a measure to build confidence and strength, maybe help increase production in the other sectors that have been neglected by the GOI.....

They wont be paying more for everything....just imported goods...keeps more cash within the market instead of sending it abroad....

Still fail to see why this means a RV is imminent....

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.

[keepmwlknfny]

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....

[amal]

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.....



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....

I understand what your saying but dont think that works that well. There are too many variables that go into job creation. Simply raising tariffs will not help the local economy and probably hurt it without anything else changing. The US tried to help the great depression with such an act and all it did was make the depression worse, the Smoot–Hawley Tariff Act.

[Captjohn]

Can someone explain why implementing taxes means that they must RV?

Any sane, non-suicidal country would think twice before loading 50% tariffs on a struggling populace backed by a toilet paper currency......but, then again, this is Iraq.

[Goldiegirl]

If the trariffs are so insignificant why were they postponed from last year? Maybe, just perhaps because they expected their currency would be of more value and have a greater purchasing power by June 2012 than it does currently.

I agree this is going to put an additional burden on the price of their goods because most of what they purchase is imported. All being passed down to the consumer.

It will be interesting to see if they go through with it or if they postpone it again. Then you can decide if there is a connection to tariffs and the RV.

[DinarDon2]

it would be pointless for them to implement such law when Most of their citizens are dirt poor. Please tell me how will this benefit the Iraqis? and you have to ask yourself more taxes on imported goods mean more money for the average citizen to have to pay when they are already losing money when they go buy food and etc. nbecause thery cannot give them back change due to no lower denoms out also no true value of the dinar. This rate is an programmed rate and dont let anyone tell you other wise.

Thanks for the post easy, I agree 100% " no true value of the dinar. This rate is an programmed rate and dont let anyone tell you other wise!!!!"

[amal]

[Boozer]

WTO said NO Iraq can not join,, You have no Tax or Tariffs,, and your currency is not tradable... must have tax and currency worth something...

WTO said no to IRAQ.... no tax no currency no tariffs.. NO MEMBERSHIP to WTO.. http://wp.me/pZC7o-dS5

[Nani?]

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.....



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....

keep you make some good points today but I'm going to have to agree with Adam on the trickle down effect... and unfortunately the increase on tariffs would have a much more imminent effect on higher prices... and creating in country goods and services would take some time I would think as well so there has to be something they can do to help the people deal with the higher prices on goods they need that are imported right? I mean unless you just want to have prices being raised and anger the masses that are already pretty volatile, so I don't know... but I suppose we will just see what happens... still you seem so dead set against the idea of an RV I wonder for maybe the 1000th time why you are even in this investment you don't believe in lol I'm hanging my hat on the points Adam made in his Wednesday chat.

[dinarmite]

They have no manufacturing base.

Yes but we lose more of ours everyday.

[DinarDon2]

WTO said NO Iraq can not join,, You have no Tax or Tariffs,, and your currency is not tradable... must have tax and currency worth something...

WTO said no to IRAQ.... no tax no currency no tariffs.. NO MEMBERSHIP to WTO.. http://wp.me/pZC7o-dS5

+1 Iraq Can't be a full member of the W.T.O. without Chapter VII release and without an Internationally recognized currency ! Article states their getting tough with Iraq ? Iraq must follow the guidelines just like everyone else, lots of people think Iraq is in charge and can do as they please? Right now they can "UNTIL CHAPTER VII RELEASE" If Iraq truly wants to become a World Power they will have to start walking the line that is and has been drawn for 10 years and counting. "NO SPECIAL TREATMENT NO EXCUSES !" Thanks for the post !

[keepmwlknfny]

keep you make some good points today but I'm going to have to agree with Adam on the trickle down effect... and unfortunately the increase on tariffs would have a much more imminent effect on higher prices... and creating in country goods and services would take some time I would think as well so there has to be something they can do to help the people deal with the higher prices on goods they need that are imported right? I mean unless you just want to have prices being raised and anger the masses that are already pretty volatile, so I don't know... but I suppose we will just see what happens... still you seem so dead set against the idea of an RV I wonder for maybe the 1000th time why you are even in this investment you don't believe in lol I'm hanging my hat on the points Adam made in his Wednesday chat.

Im in agreement that the taxes on imported goods will have an immediate effect, but I think it will be a positive one....it will create demand for lower priced (in-country) goods and services....

Its just like here in the states...it is becoming more expensive to manufacture and import goods from other countries so a lot of US companies are actually moving back to the states creating more jobs for us. Keeps more money locally....

Im not dead set against the idea of a RV lol....It can happen....I just dont see how almost everything means a "imminent RV" LOL....So I just wanted to discuss why implementing a tax on imported goods only, would force a large scale RV like many believe....

[skitealwedrop]

Seems that this is simply a way for them to get its citizens to buy more local goods, and taxing imported items, making them more expensive to buy. The more people that rely on the local economy, the stronger it will get.

Its a measure to build confidence and strength, maybe help increase production in the other sectors that have been neglected by the GOI.....

They wont be paying more for everything....just imported goods...keeps more cash within the market instead of sending it abroad....

Still fail to see why this means a RV is imminent....

Smart post Keep. Makes sense to me.

[NoviceInvestor]

its good to read all these comments but we must all realise that Iraq is Iraq and will do what it wants when it wants...And we can all continue to read and ingest every rumor,comment positive or negative and speculate...It is gonna happpen when it happens...

[RRSport]

its good to read all these comments but we must all realise that Iraq is Iraq and will do what it wants when it wants...And we can all continue to read and ingest every rumor,comment positive or negative and speculate...It is gonna happpen when it happens...

Iraq cant actually do anything it wants.

They are seeking many things such as CH7 and WTO ascension and you cant just make up a figure you want your currency to be worth. Even a bonkers country like Iran knows that.

[MrFnHappy]

Can someone explain why implementing taxes means that they must RV?

[storm1]

Ummmm. Don't you realize that taxes on goods means higher purchase price?

ummmm ummmm
depends on what they are taxing.
recently the USA imposed a 30%-200% tarriff on all chinese imports of solar products. why? ill tell you why. To make the playing field on solar products purchased in the USA more competitive. does it increase the price of solar products made in the USA? NO
It increases the price of the imported solar products. So in essence the price remains the same. Also it instills productivity for the iraqi economy.