ERBIL — The Kurdistan Regional Government (KRG) on Monday submitted a report on its ongoing tax reform to the Kurdistan Region parliament, a statement said.

The KRG said that its ninth cabinet is focused on establishing an economy that works for every individual in the Kurdistan Region and that it requires a tax system that is "fair".

It also added that the KRG is following through with its commitments to prevent tax evasion, for which it has begun taking a number of legal and administrative measures "to ensure that everyone pays their fair share”.

The measures are as follows:

1. At the behest of Prime Minister Masrour Barzani, income tax on oil and fuel products, by-products, chemical products, and fuel waste, taxes will be taken as follows:
a. 7% tax on value when importing;
b. 4% tax on value when exporting;

2. No oil or gas company will be allowed to operate in the Kurdistan Region until taxes are paid in full;

3. The Ministry of Natural Resources will estimate and audit the taxes for companies operating in the Kurdistan Region;

4. All supplier companies must register with the Ministry of Natural Resources and the Company Registration Directorate at the Ministry of Trade and Industry;

5. Foreign oil and gas employees who began working in the Kurdistan Region starting 17/1/2021 will be required to pay taxes.

Prime Minister Masrour Barzani has repeatedly reiterated his cabinet's commitment to diversifying the economy as part of its reform agenda. He has also mentioned that the Kurdistan Region should work on finding alternatives for oil revenues, as it is the main source of income for both Iraq and the autonomous region currently.

BasNews