The Iraqi General Authority of Customs announced on Sunday the imposition of a 5% customs tariff on materials related to photovoltaic power generation systems.
Tamer Al-Qasim, Director General of the Customs Authority, told the Iraqi News Agency (INA) that a letter has been sent to the executive team of the customs automation project, requesting the identification of customs codes and tariff rates for materials, equipment, and solar panels related to photovoltaic energy. He added that products such as solar cells, lithium batteries, inverters, and cables are each subject to a 5% tariff.
This rate falls within the lower bracket of Iraq’s new customs tariff framework. Since January 2026, Iraq has imposed tariffs ranging from 5% to 30% on approximately 6,000 imported goods. The Iraqi government views this reform of the tariff system as part of its efforts to increase non-oil revenues, which currently account for less than 10% of public income. Furthermore, the implementation of the ASYCUDA electronic customs system in Iraq replaces the previous flat rate per container, ending the practice where traders paid a uniform clearance fee regardless of the goods inside the container.
Critics argue that this tariff adjustment has significantly increased import costs, with clearance fees for some goods rising by 15% or even higher. This change sparked protests among traders in Baghdad and other cities in early February, with economists also warning that such measures could exacerbate domestic inflation. Some analysts link the timing of this tariff increase to the current financial pressures facing Iraq. The Iraqi Ministry of Finance, however, denies facing a liquidity crisis, attributing recent delays in salary payments to “technical issues.”
Setting a relatively low tariff on photovoltaic equipment reflects the Iraqi government’s commitment to promoting renewable energy adoption. In 2025, Iraq advanced cooperation agreements with several foreign energy companies, including negotiations with the UAE’s Masdar for a 1,000 MW solar PV project. The Iraqi Ministry of Electricity also announced plans to install photovoltaic systems on 530 government buildings nationwide. In July 2025, Rasheed Bank in Iraq, with support from the central bank, launched a specialized lending program offering loans of up to 30 million Iraqi Dinars for citizens to purchase household solar systems.
