Today, Monday, Prime Minister Mohammed Shia’ Al-Sudani inaugurated the Tax Conference for Economic Development and Investment Climate Enhancement held in Baghdad.

His Excellency emphasized that the government prioritizes economic sector reform and sustainability, stating that the gateway to this reform lies in supporting the private sector by providing an attractive environment for investors and capital. He highlighted the adoption of global standards for business practices and tax compliance, emphasizing the need for flexibility and fairness.

The Prime Minister pointed out that the world is moving towards unifying tax procedures and laws to align with international standards. He confirmed Iraq’s progress in this area, which opens wide opportunities for both foreign and local investors, strengthens partnerships with the private sector, and fosters confidence in the Iraqi market.

The conference, organized by the Osoul Foundation for Economic Development and Sustainable Growth, aims to spotlight the 2025 tax reform plan and its impact on the national economy. It also discusses the challenges facing the current tax system, modern digital and monitoring solutions, and enhancing public-private partnerships in tax collection. Additionally, it supports investors by building a transparent and investment-friendly tax system.

Key points from the Prime Minister’s speech:

• The greatest challenge is prioritizing economic reform and transitioning to a diversified economy.

• The annual public expenditure budget is approximately 150 trillion Iraqi dinars, with tax revenues at 3 trillion, highlighting the need for review and adjustment.

• Previous economic reform decisions were exploited for slogans and misinformation, causing pressure on official institutions.

• The December 2023 Tax System Reform Conference resulted in a package of important recommendations.

• Cabinet Decision No. 24074 of 2024 implemented tax reform packages, followed by the formation of a Higher Committee to oversee tax reform.

• Efforts have attracted significant international investor interest in Iraq’s tax reforms.

• Despite cautious political and social environments, non-oil revenues have seen significant growth, rising from 7% in 2022 to 14% in 2024.

• The government will not allow tax increases that deter business or undermine tax fairness.

• Tax revenues increased by 26% in 2024 compared to the previous year, with a further 3% rise in the first half of the current year.

• Digital transformation has enhanced tax collection capacity and accuracy.

• The tax inquiry platform eliminated issues of name duplication, delays, corruption, and boosted taxpayer confidence in tax procedures.

• An electronic tax payment receipt system has replaced the previously paper-based system.

• There is ongoing cooperation with reputable international companies to meet the highest international tax standards.

• The draft new Income Tax Law adheres to international standards while maintaining social justice and tax relief for low-income earners.

• The upcoming law will be business-friendly, support the green economy, and provide allowances for startup projects.

• The Higher Tax Reform Committee developed tax policy guidelines for oil companies to address challenges and remove operational obstacles.

• Unifying tax procedures between the federal government and the Kurdistan Regional Government has facilitated handling tax issues for universities and private banks.

• These reforms send a message to citizens about supporting the political system and optimal resource management.

Office of the Prime Minister – August 25, 2025

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