Complicated tax structure weighing down Iraq’s fledgling government and its citizens

Complicated tax structure weighing down Iraq’s fledgling government and its citizens
By James Warden, Stars and Stripes
Mideast edition, Monday, September 28, 2008

BAGHDAD — Everybody gripes about taxes. But most people know they are a necessary evil, and when the tax system does not work smoothly, often the country doesn’t either.

That is one of the problems in Iraq. The centralization of tax money in the country slows crucial ground-level projects that American cities and counties are accustomed to completing on their own. Iraqi communities that face unexpected problems can find it hard to fix them in a timely manner.

"If it breaks, it stays broken," said Maj. Timothy Collier, the brigade civil affairs officer for 2nd Brigade, 101st Airborne Division.

Iraqi money must flow through no fewer than four levels before it reaches the streets of Baghdad. It originates in the federal government’s Ministry of Finance, then goes to a provincial government. From there, it goes to the "Amanat," or city hall. Finally, it goes to the "beladiyas," or public works districts spread around the sprawling city. The beladiyas have budgets based on population and other criteria, but they must submit requests back up the chain for many projects.

"There’s a lot of bottlenecks," said 1st Lt. Dale Kooyenga, the economic officer for Multi-National Division—Baghdad.


Rest of article at: http://www.stripes.com/article.asp?section=104&article=57730