Iraqi Traders Rally Against New Customs Tariffs Amid Declining Oil Revenue Crisis

BAGHDAD – In the heart of Baghdad, a large group of traders and customs clearance company owners took to the streets on Sunday, voicing their opposition to newly implemented customs tariffs. These charges, they argue, have significantly raised their operational expenses and disrupted the flow of trade.

These updated tariffs, effective from January 1, are part of a governmental strategy aimed at tackling Iraq’s financial issues, including reducing its debt and decreasing its dependence on oil revenue amid a downturn in oil prices.

Currently, Iraq grapples with a debt exceeding 90 trillion Iraqi dinars (approximately $69 billion), and its national budget is still heavily reliant on oil, contributing around 90% of its income, even as efforts to diversify continue.

Traders, however, contend that certain tariff rates, which can reach up to 30%, are excessively burdensome. In response, critics have initiated a legal challenge to mitigate the impact of these tariffs, with the country’s Federal Supreme Court expected to deliver a decision on this matter by Wednesday.

On Sunday, the protestors assembled at the General Customs Directorate, vociferously condemning corruption and voicing their dissatisfaction with the newly imposed tariffs.

“We used to pay about 3 million dinars per container, but now in some cases they ask for up to 14 million,” said Haider al-Safi, a transport and customs clearance company owner. “Even infant milk fees rose from about 495,000 dinars to nearly 3 million.”

He said that the new tariffs have caused a backlog of goods at the Umm Qasr port in southern Iraq and added that electric vehicles, previously exempt from customs duties, are now subject to a 15% fee.

“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,” said Mohammed Samir, a wholesale trader from Baghdad.

Protesters also accused influential groups of facilitating the release of goods in exchange for lower unofficial payments, calling it widespread corruption. Many traders, they said, are now considering routing their imports through the Kurdistan region, where fees are lower.

The protests 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 remained shut and hung up banners reading “Customs fees are killing citizens.”