Solar panels installed on a rooftop as part of Iraq
Iraq sets 5% customs tariff on solar power equipment
BAGHDAD — Iraq’s General Commission of Customs on Sunday announced a 5 percent customs tariff on solar power system supplies.
Commission Director General Thamer Qassim told the Iraqi News Agency that “a letter has been directed to the national team for implementing the automation project to determine the customs code and tariff rate for solar energy supplies, equipment and panels.”
He added that “the rate for solar cells, lithium batteries, inverters and cables is 5% for each item.”
The tariff is among the lower rates under Iraq’s new customs framework, which has imposed duties ranging from 5 to 30 percent on roughly 6,000 imported goods since January 2026.
The government has framed the overhaul as part of efforts to boost non-oil revenues, which account for less than 10 percent of public income. The rollout of the ASYCUDA electronic customs system has ended a previous flat-fee system that allowed traders to pay fixed rates per container regardless of contents.
Critics say the shift has sharply increased import costs, with some goods seeing clearance fees rise by 15 percent or more. The changes triggered trader protests in Baghdad and other cities in early February. Economists have warned the measures could fuel inflation.
Some analysts have linked the timing of the tariff increases to fiscal pressures. The Finance Ministry has denied facing a liquidity crisis, attributing recent salary delays to “technical” issues.
The relatively low tariff on solar equipment reflects government efforts to expand renewable energy use. In 2025, Iraq advanced agreements with foreign energy firms, including discussions with the UAE’s Masdar on a 1,000-megawatt solar project. The Electricity Ministry announced plans to install solar systems at 530 government buildings.
Rasheed Bank launched a loan program in July 2025 offering up to 30 million dinars for citizens to purchase home solar systems, backed by the Central Bank.
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