Baghdad, June 7 (Rn) – The Central Bank of Iraq, Tuesday, that the activation of non-tax law does not affect the increase of the rate of inflation in the country, noting that the volatility of oil prices due to political changes in some countries cause to raise inflation in the Iraqi economy.
The adviser said the ministry the appearance of Mohammed Saleh told the Kurdish news agency (Rn) that “the increase of the level of inflation in the Iraqi economy has nothing to do for not activating the law of national taxes by the government, but because of Atemtd Iraq’s total oil prices fluctuating because of the instability of some countries.”
The CBI has stressed that the tax system in Iraq, not backward rise of the responsibilities granted by the Ministry of Finance, which cause great economic problems.
The sector has witnessed in Iraq, taxes nearly ceased in recent years because of turmoil in Iraq, the economic situation and the tense security situation which has led to limit the tax system on the sector staff, merchants and traders only.
He added that “the central bank sees that rising food prices worldwide by 40% a negative impact on the inflation profile in Iraq.”
He pointed out that “inflation in Iraq, inflation is mainly imported from abroad and there are internal factors supported significantly, particularly with regard to the adoption of Iraq’s total import of goods.”
Announced that the Ministry of Planning and Development Cooperation for headline inflation for the month of last May by 0.8%.
Known that excessive inflation in the general level of prices and rising incomes in cash or a component of cash income such as wages or profits as well as high costs and excessive in the creation of cash balances.
He fears a number of economists from the continuing high rates of inflation in the country in the absence of mechanisms to reduce the height of government institutions on the management of the economy in the country
He suggested the central bank inflation foundation for the month of March last year by 5.7% for the month of February comes to the former because of the high electricity prices.
The main tasks of the Iraqi Central Bank to maintain price stability and the implementation of monetary policy, including exchange rate policies, and manage the reserves of foreign currency, and the issuance of currency management, as well as to regulate the banking sector.