Korek would like to clarify all details regarding the tax law on all new scratch card sales. (Part of the national budget law)
The Iraqi government will enforce a 20% sales tax on all types of prepaid scratch cards and postpaid billings starting August 1st applicable on telecommunication companies in Iraq.
In relation to this decision, Mr Chawshin Hassan, the head of public relations at Korek telecom, explained that this law was decided and approved on by the Iraqi government in compliance with segment (A) in article 33 of the national budgeting law for the year 2015, which was announced several months ago along with the declaration of the 2015 annual budget by the Iraqi parliament. This decision binds all mobile providers to apply the tax that will be collected from citizens and residents by the ministry of treasury through the authority of the general commission of taxes. The new decision was also communicated to Korek telecom through the commission of media and communications as well.
Mr Hassan also added that Korek Telecom will comply to the Iraqi government and parliament’s decision, yet at the same time stating very clearly that the increase will be directly delivered to the ministry of treasury, and that no mobile operator will benefit of any excess sums collected.
Mr Hassan concluded by saying “Korek is obligated by law to comply with this ruling, and possesses no legislative nor executive power to spare or enforce any customer from taxation proposed by the government and parliament. Korek has always shown commitment toward its customers, and continuously strives to offer the best of services and prices in Iraq, using the latest of technologies”.