Economy, Domestic Economy

Iraq to Revoke Transit Fee Hike

Iraq to Revoke Transit Fee HikeIraq to Revoke Transit Fee Hike

Following the news of a fivefold increase in transit fees imposed by Iraqi customs authorities on Iranian trucks, director of Ilam Province customs office on Monday announced that Baghdad is expected to lower the tariffs to their previous level.

“Iraq’s parliament has rejected the transit fare hike from its latest resolution. The Iraqi government is expected to announce the decision in the upcoming days,” Khalil Heydari was quoted by IRNA as saying.

Iran and Iraq currently trade via Mehran border terminal. Around 400-600 Iranian trucks and trailers cross the border every day.

Iranian goods worth $76 million were exported to Iraq via Mehran border in the first month of the current Iranian year (March 21-April 20, 2015), indicating a 16 percent increase compared to the similar period last year, said Heydari, noting that  exports declined during the second month following the increase in transit fees.

Last week, the Iraqi customs officials increased transit fees for Iranian trucks to 36.7 million rials ($1,112 at market exchange rate) from the previous rate of 7.1 million rials ($215).  

Iranian officials including First Vice President Eshaq Jahangiri have been negotiating with the Iraqi authorities to resolve the matter.