Traders and customs clearance company owners protested Sunday outside Iraq’s General Customs Directorate in Baghdad, demanding the government reverse customs tariffs they say have sharply raised costs and interfered with imports.
The duties, introduced on Jan. 1, were framed by authorities as a step toward reducing Iraq’s debt—more than 90 trillion Iraqi dinars ($69 billion) and lowering reliance on oil revenues, which still account for about 90 percent of the state budget as prices decline.
Protesters argued the policy has instead slowed trade, creating congestion at Umm Qasr port and prompting some importers to consider routing goods through the Kurdistan region, where fees are lower.
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In addition, traders report that the tariffs, which in some cases are as high as 30%, have created an undue financial burden.
Opponents have filed a legal challenge, and Iraq’s Federal Supreme Court is scheduled to rule Wednesday.
At the demonstration, participants chanted against corruption and rejected the new charges. Some accused influential groups of facilitating the release of goods in exchange for lower unofficial payments.
The protest coincided with a strike by shop owners in several commercial areas of the capital. Many stores remained closed, displaying banners reading, “Customs fees are killing citizens.”