Iraq’s caretaker cabinet has reinstated a 20 percent tax on mobile phone and internet recharge cards as part of measures to increase state revenues and reduce the budget deficit. The decision revives a levy first introduced in 2015 during a period of fiscal austerity and later scrapped in 2022.
Economic expert Mohammed Al-Hassani said the tax is imposed on telecom companies under income tax regulations, making them legally responsible for paying it. He stressed that companies are not permitted to raise prices for consumers on their own initiative, warning that passing the burden onto users would be unfair, particularly given the high cost and limited quality of telecommunications services in the country.
Journalist Hassan Hamed criticized the move, arguing that the government is attempting to close fiscal gaps at the expense of citizens while leaving high salaries, allowances for senior officials, and inflated project budgets unaddressed. He said these areas should be reviewed before imposing additional costs on the public.
Retailers echoed concerns about the impact on subscribers. Mohammed Ali, who operates a phone recharge shop, said that while retailers are not directly affected, any price increases by telecom operators would ultimately be borne by customers.
The tax was reinstated on October 23 as part of a broader effort to strengthen non-oil revenues. Earlier, Iraq’s parliamentary Communications Committee revealed that telecom companies owe the government billions of dollars in unpaid dues, urging authorities to recover these funds to ease fiscal pressure.
