[67960] Iraq's Supreme Court cancels 20% tax on recharge cards and apps

[67960] Iraq's Supreme Court cancels 20% tax on recharge cards and apps

Iraq's Supreme Court cancels the "service fee" on mobile companies

In a significant move, the Supreme Judicial Council of Iraq announced an official decision canceling the Communications and Media Commission's decision to impose payments under the title of "service fees" on mobile phone companies. The decision was made following an appeal filed by the authorized director of Atheer Telecom company in Iraq.

According to reports by the Iraqi News Agency (INA) and Al-Sabah Newspaper, the court determined that the 20% addition collected on recharge cards and electronic applications constitutes in practice a "sales tax" rather than a "service fee." Judge Ayad Mohsen Damad, head of the Special Appeals Board of the Communications Commission, emphasized that the imposition of taxes and fees is the exclusive authority of the legislative branch in accordance with Article 28 of the Iraqi Constitution.

As reported by Ultra Iraq, Judge Damad clarified that the Communications Commission relied in its decision on a directive from the Council of Ministers from the transitional government period. According to him, "a transitional government does not possess the legal authority to issue decisions that impose new economic burdens on citizens," and he determined that the original decision "lacked a proper legal basis."