Amanj Raheem, Secretary of the Kurdistan Regional Government's caretaker Council of Ministers, stated that all border crossing ASYCUDA implementation points have been finalized between the Kurdistan Regional Government and the federal government, leaving only one unresolved issue, noting that the “fundamental solution” to the oil dispute lies in enacting a Federal Oil and Gas Law.

Speaking to Channel8, Raheem said that “There are two major unresolved issues with the federal government.” 

120B Quota and ASYCUDA Issues Stand as Barriers to Salaries 

He stressed that the first issue concerns determining the federal government's share of domestic revenue, which was set at 120 billion dinars as of July last year, an outstanding matter that remains unresolved following the subsequent decline in the Kurdistan Region's domestic revenue. 

The official further mentioned that the second issue involves the ASYCUDA system, which impacts domestic revenue and is ultimately linked to the salaries of the Kurdistan Region's public sector employees.

The latest high-level meeting between the Kurdistan Regional Government and Iraqi federal authorities finalized a technical agreement last month to implement ASYCUDA at border crossings to unify tariffs. 

Channel8 reported earlier that Federal Finance Minister Faleh al-Sari recommended the Iraqi Council of Ministers implement ASYCUDA and establish a joint committee to evaluate Kurdistan Region border crossings. 

The proposal, submitted on July 5, also seeks a unified framework for managing customs exemptions and revenue distribution between Baghdad and Erbil.

Revenue Collection Mechanism Sent to Iraqi Prime Minister 

Regarding the talks, the secretary stated that all points regarding the implementation of the ASYCUDA system at border crossings have been finalized. 

Only one unresolved point remains, he added, which has been submitted in writing to the Iraqi Prime Minister Ali Faleh al-Zaidi: “the mechanism for revenue collection at border crossings and its distribution between the federal government and the Kurdistan Regional Government.”

The secretary highlighted his belief that implementing the ASYCUDA system in Kurdistan will inherently increase regional revenue, ultimately enabling the Kurdistan Region to more easily fulfill its financial obligations to the federal government.

Oil Exports Top 120K Barrels as Raheem Urges Federal Law 

On the oil issue between both governments, Raheem said that following guarantees from Prime Minister Ali Faleh al-Zaidi and the Iraqi government to protect the oil fields, oil production and exports have risen significantly, exceeding 120,000 barrels.

He underlined that resolving the issues of domestic revenue, ASYCUDA, and oil will bring stability to the salary issue. 

Another contributing factor is the availability of cash with the federal government, he added. 

According to him, the fundamental solution to the oil dispute between both sides lies in introducing a new law called the Federal Oil and Gas Law.