Iraqi Finance Minister Hoshyar Zebari predicted the country's oil revenues to reach 84 trillion dinars in 2015, while thanking Kuwait for approving to postpone for a year the final payment of compensations.
"The Iraqi general budget for 2015 is 123 trillion dinars with a 23 trillion dinar deficit," Zebari told a news conference.
He attributed the deficit to expansion of the Islamic State in Iraq and Levant (ISIL) over industrial and agricultural areas, coupled with declining oil prices.
"This has put us in a very difficult position, so we have decided to impose taxes on major goods. However they don't include social care, wages of medium-income people, fuel and food," he added.
He defended the tax move and said many countries depend on taxes for their revenues including neighboring Arab countries.
The 2015 budget is based on USD 60 as the price of the oil barrel, and the export of 3.3 million barrels per day, said Zebari, who noted that non-oil revenues were projected at 15 trillion dinars.
An Iraqi dinar equals USD 0.000873.
Zebari, on the other hand, thanked Kuwait for considering the financial problems of Iraq.
"The State of Kuwait has agreed to postone the final payment of compensations for a year, and we thank them for answering our request," he said.