Baghdad: Prime Minister Mohammed Shia’ al-Sudani chaired the fourth regular session of the Cabinet for 2026, where several key decisions were made regarding the country’s economic and industrial policies.

According to National Iraqi News Agency, the Cabinet focused on reducing expenditures and maximizing revenues across all ministries and state institutions. A significant decision was the continued disbursement of salaries and entitlements to victims of terrorism until the law on compensation for those affected by military operations, military errors, and terrorist acts is amended by the Council of Representatives.

In tax administration, the Cabinet amended Resolution No. 822 of 2025, ratifying tax collection from oil companies for 2011-2016 and endorsing a 35% deduction on transactions related to other revenues of oil companies. The amendment also addressed the settlement of outstanding tax differences for oil companies and canceled fines and interest due to late payment.

The Cabinet sanctioned the Ministry of Justice to continue collecting fees for services until the issuance of the Federal General Budget Law for 2026. The collected fees will adhere to the amended Federal Financial Management Law No. (6 of 2019) and be deposited into the public treasury.

Government entities, particularly the Ministries of Oil, Water Resources, and Electricity, have been directed to meet their equipment needs through existing resources or leasing from private and public sectors via competitive bidding. The Cabinet also expedited the marketing of sulfur, requiring monthly reports on this matter.

Additionally, the Cabinet approved the transfer of 80% of the outstanding amount owed to the Treasury, based on Cabinet Resolution No. 600 of 2024 and its amendments. The Mandali-Sumar border crossing was designated as an international crossing under the Border Ports Authority Law No. 30 of 2016.

In the industrial sector, the Cabinet authorized the General Directorate of Industrial Development to license the Golden Babylon Company to establish a factory for manufacturing motorcycles and electric vehicles. Regulations were also issued for importing used materials, including customs duties determined by the Ministry of Finance.