Baghdad traders and customs clearance company owners staged a demonstration outside the General Customs Directorate on Sunday, saying newly imposed customs tariffs that went into effect on Jan. 1 have sharply increased their costs and disrupted trade. The protesters demanded that Iraq’s government roll back the tariffs, arguing the fees have burdened businesses and consumers at a time when the country is already under fiscal strain.
Iraq’s debt is more than 90 trillion Iraqi dinars, equivalent to about $69 billion, and the state budget remains heavily reliant on oil, which accounts for about 90% of revenues, according to the AP report. The customs tariffs were introduced as part of an effort to decrease the country’s debt and reduce its reliance on oil revenues as oil prices have dropped.
Protesters gathered in central Baghdad, chanting slogans against corruption and rejecting the new fees. One customs and transport company owner, Haider al-Safi, described the changes as sudden and steep, saying, “We used to pay about 3 million dinars per container, but now in some cases they ask for up to 14 million,” and adding that “Even infant milk fees rose from about 495,000 dinars to nearly 3 million.”
Al-Safi also said the tariff increases have produced delays for shipments at the Umm Qasr port in southern Iraq, and he said electric vehicles that had previously been exempt from customs duties are now subject to a 15% fee. Another wholesale trader, Mohammed Samir, said the impact falls hardest on people with limited incomes, saying, “The main victim is the citizen with limited income, and government employee whose salary barely covers his daily living, those who have to pay rent, and have children with school expenses — they all will be affected by the market.”
In addition to the alleged cost increases, protesters accused influential groups of facilitating the release of goods in exchange for lower unofficial payments. They said the practice is widespread and that some traders are considering rerouting imports through the Kurdistan region, where they said fees are lower.
The demonstrations coincided with a nationwide strike by shop owners, who closed markets and stores in several parts of Baghdad to oppose the tariff increase. In major commercial districts, shops stayed shut and displayed banners reading “Customs fees are killing citizens.” A lawsuit filed by opponents of the tariffs is seeking to reduce the decision, with Iraq’s Federal Supreme Court set to rule on Wednesday.