The Kurdistan Region’s Ministry of Transport and Communications said the 20% tax and service increase on telecommunications services does not affect internet companies operating locally. Citizens using Wi-Fi and cable internet in the region will not face higher costs because of this decision.
Dilan Rashad, the ministry’s spokesperson, said the ministry has officially informed telecom service providers. The affected companies have already started implementing the decision. Rashad emphasized that the ministry monitors compliance to ensure transparency.
In addition, Dilan Rashad clarified that the tax only applies to three telecom operators: Korek Telecom, Asiacell, and Zain Iraq. These companies pay the tax because the federal government in Baghdad issued their operating licenses. Customers of these operators may notice minor price adjustments on some services.
In contrast, 35 Wi-Fi and cable internet companies operate under contracts with the Kurdistan Region’s ministry. Rashad confirmed that because these firms are licensed locally, the federal tax does not apply to them. He said the ministry actively protects local internet providers from federal tax measures.
Rashad warned that federal tax decisions often increase citizens’ financial burden. He added that if Iraq introduces a similar measure targeting local internet providers, the ministry will prevent companies from passing the cost to customers.
“We will not allow internet card prices to rise,” Rashad said. “Companies will have to pay the tax from their own revenues. This protects citizens from unexpected expenses.”
On February 23, 2026, Iraq’s Ministry of Communications notified private internet service providers about the 20% tax reinstatement on internet and telecom services. The State Company for Communications and Informatics, part of the federal ministry, sent the notice.
This move follows a December 21, 2025, decision by the Iraqi Council of Ministers to reactivate the 20% tax. The tax had been suspended since 2023 but now applies again to services regulated by Baghdad.
For now, internet companies licensed by the Kurdistan Regional Government remain fully exempt from the new tax. Citizens in the region can continue using local internet services without any additional fees or charges.
