Baghdad Traders Rally Against New Customs Tariffs Amid Iraq’s Declining Oil Revenue Crisis

BAGHDAD – In the heart of Baghdad, a wave of discontent surged through the streets as hundreds of traders and owners of customs clearance companies rallied together on Sunday. Their collective voice echoed with demands for the Iraqi government to reconsider the newly enacted customs tariffs that have, according to them, dramatically escalated their operational costs and hindered trade.

The tariffs, introduced on January 1, were part of a strategic move by the government to tackle the nation’s soaring debt and reduce its heavy dependence on oil revenues, which have been impacted by falling oil prices. Despite these efforts, Iraq continues to grapple with a debt exceeding 90 trillion Iraqi dinars, equivalent to $69 billion, and remains heavily reliant on oil, which constitutes approximately 90% of its revenue stream.

However, the traders argue that the revised tariffs, which in some instances have climbed to as much as 30%, unfairly burden their businesses. In response to these grievances, opponents have initiated legal action, with a lawsuit filed in hopes of overturning the decision. A crucial ruling from Iraq’s Federal Supreme Court is anticipated this Wednesday, which could potentially alter the course of these controversial tariffs.

As the demonstrators converged outside the General Customs Directorate, they voiced their frustrations by chanting slogans condemning corruption and denouncing the new fees. The palpable tension was underscored by the sharp increase in costs that traders now face. “We used to pay about 3 million dinars per container, but now in some cases, they ask for up to 14 million,” lamented Haider al-Safi, a transport and customs clearance company owner. He further highlighted the spike in costs for essential goods, noting that fees for infant milk have surged from roughly 495,000 dinars to nearly 3 million.

The demonstrators gathered outside the General Customs Directorate Sunday, chanting slogans against corruption and rejecting the new fees.

“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.”