Baghdad: The High Committee for Tax Reform announced on Friday the drafting of a new income tax law and the initiation of tax settlement procedures with oil companies, as part of a comprehensive strategy to modernize the country's tax system.

According to National Iraqi News Agency, the head of the committee, Abdul Hussein Al-Anbaki, emphasized that the committee has completed a draft law on income tax and is currently working on a sales tax law. Additionally, they have launched the process of tax settlement with oil companies.

Al-Anbaki noted that this issue has been complex and sensitive in the past, prompting some oil companies to consider leaving Iraq due to an unfavorable tax environment. However, he mentioned that recent reforms have significantly improved the situation.

He further explained that the committee has developed a long-term reform strategy that enjoys broad support from international organizations, including American and German institutions, through technical consultations and training programs for tax staff in Baghdad and the provinces.

Al-Anbaki confirmed that the course of tax reform is progressing in parallel across various aspects, despite the ongoing challenges.