Baghdad traders: Citizens are the final victim of customs hikes
Shafaq News– Baghdad
Traders in the Iraqi capital, Baghdad, have warned that recent increases in taxes and customs duties risk driving local markets into stagnation, with consumers expected to absorb the impact through higher prices and shrinking purchasing power.
Salem Hassan, a construction materials trader, told Shafaq News that higher customs duties have disrupted market activity and sharply weakened demand. On some items, fees now exceed 30 percent —“nearly a third of the price”— a level he described as unsustainable for both traders and consumers.
Wholesale merchants and warehouse owners said the pressure has intensified due to the combined application of higher taxes, revised customs tariffs, and the mandatory quality certification imposed on imported goods.
The sudden rise in import and storage costs, they explained, has exceeded the market’s ability to absorb price increases, while some traders reported suspending imports of goods important for daily life.
Across the sector, traders described current customs rates as excessive, stressing that “the citizen will be the final victim,” as end consumers ultimately shoulder the cost. They called for a review of the measures to prevent deeper market contraction.
Economist Mohammed Al-Hassani told Shafaq News that expanding customs duties under current conditions could accelerate inflation, particularly as Iraq lacks a domestic industrial base capable of meeting market demand. Limited local production, he cautioned, risks compounding unemployment pressures, especially among young people.
The warnings follow a decision by Iraq’s General Customs Authority to introduce a new 15 percent customs tariff starting in early 2026, with exemptions for essential goods affecting daily life. The Duhok Chamber of Commerce and Industry cautioned that the revised tariffs would raise prices in local markets, urging authorities to reconsider the policy to avoid further harm to the national economy.
