The Kurdistan Regional Government (KRG) Minister of Finance said that no taxes have been collected from low-income citizens, while also commenting on fiscal reforms, public sector salaries, and financial relations with Iraq’s federal government.

Speaking in a recent statement, the minister said that the government has sought to protect vulnerable groups from taxation while continuing efforts to strengthen public revenues.

Tax Policy and Revenue Measures

The minister stated that “not a single dinar” has been collected in taxes from poor citizens, emphasizing that the current tax framework is designed to avoid burdening low-income populations.

He also said the government has reduced administrative bureaucracy and unnecessary expenditures while increasing overall revenue collection.

Public Sector Salaries

Addressing the issue of delayed or withheld public sector salaries, the minister said that unpaid wages for government employees have now been formally classified as an official debt owed to them, rather than remaining under the previous classification of “saved wages.”

The status of public sector salaries has been a recurring issue in the Kurdistan Region in recent years, often linked to broader fiscal disputes with the federal government in Baghdad.

Relations With the Federal Government

The minister accused successive federal governments of applying significant financial pressure on the Kurdistan Region, stating that the last three federal cabinets have contributed to ongoing fiscal challenges.

He also said that salary payments and broader economic conditions have, at times, been used as political leverage against the region.

Government Transparency and Fiscal Reform

Highlighting governance reforms, the minister said that the past seven years of financial management under the current administration reflect a high level of transparency, describing it as a “source of pride.”

He added that ongoing reforms aim to improve efficiency in public spending and strengthen financial stability across government institutions.

Ongoing Fiscal Challenges

The Kurdistan Region continues to face periodic budgetary and salary disputes with Iraq’s federal government, alongside efforts to diversify revenue sources and streamline public financial management.

Authorities have not provided additional details on upcoming fiscal policy changes or potential agreements with Baghdad regarding long-term budget arrangements.