Peregraf — Iraq’s Speaker of Parliament, Mohammed al-Halbousi, had formally urged Prime Minister Mohammed Shia’ al-Sudani to suspend a cabinet decision raising customs duties days before merchants launched a widespread strike across the capital on Sunday.
In a letter dated February 1, 2026, al-Halbousi called on the prime minister to halt the implementation of Cabinet Resolution No. 957 of 2025 for a period of 90 days and to review the customs tariff structure. The request followed a parliamentary session held on January 10–11, attended by senior officials from the Border Ports Authority, Customs, and the Tax Authority.
According to the letter, lawmakers proposed adopting a unified customs rate of 5 percent on the affected goods and reducing duties on hybrid vehicles from 15 percent to 5 percent, citing environmental protection and fuel conservation as key considerations. The speaker said the measures were aimed at easing pressure on citizens and stabilizing the market.
Despite the parliamentary appeal, major commercial districts in Baghdad came to a standstill on Sunday as merchants and shopkeepers went on strike to protest the customs hikes. Markets in Al-Shorja, Al-Rashid Street, Al-Rubaie, and Al-Sina’a were closed, along with key trading areas in Karrada and Al-Nasr Square. Dozens of traders also staged protests, particularly in the Al-Shorja market.
Merchants argue that higher customs duties have driven up prices, weakened consumer purchasing power, and led to a sharp decline in sales, placing additional strain on small and medium-sized businesses. Protest organizers warned that the strike would continue unless the government revisits the policy.