Iraq is looking to suspend a law that was to be implemented in two weeks raising tariffs on imports, a spokesman said Monday, in the latest move by the government to head off protests.
The announcement came a day after Iraqi lawmakers voted to reduce their salaries and that of ministers by 10 percent, and to increase allocations of food for the needy.
"The council of ministers has authorised the secretary general of the cabinet to prepare a bill to suspend the work of the tariffs law until further notice," government spokesman Ali al-Dabbagh said in a statement.
The tariffs law was originally passed in December, before uprisings in Tunisia and Egypt sparked protests across the region, including in Iraq where demonstrators have railed against widespread corruption, high unemployment and poor basic services such as food and water.
It had been due to come into effect on March 6, and would have allowed Baghdad to protect local industries as its moribund economy slowly grows following decades of violence and sanctions.
Duties were to range from zero to 80 percent of the value of products being imported. Tariffs for rice, sugar and antibiotics were set at five percent, while duties for cars were 15 percent.
The law replaced a variety of past regulations, including some dating back to the time of the Coalition Provisional Authority (CPA), the occupation authority charged with administering post-invasion Iraq.
In Order 12, originally signed June 12, 2003, the CPA suspended tariffs on all products, notably leading to a massive influx of used cars.
Order 38, signed in September 2003, created a "reconstruction levy" — a single tariff of five percent on all imported goods except food, medicine, books, clothing and products related to humanitarian assistance or Iraq's reconstruction.
Notable exceptions included products used by the CPA, coalition forces, their contractors and foreign governments.
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