Amman: Minister of Local Administration Walid Al-Masri announced that the government will not increase the tax on real estate, as it has forwarded the draft building and land tax law to the Lower House. This move aligns with a comprehensive reform vision and is not intended to increase the financial burden on citizens.
According to Jordan News Agency, Al-Masri, during a dialogue session at Bani Obeid Municipality, emphasized that the government has recently implemented several “corrective” measures benefiting citizens. These measures include amendments to customs duties on electric vehicles, tax reconciliations, and exemptions on income and sales tax.
Al-Masri argued that it is unreasonable for the government to enact legislation aimed at collecting additional funds for municipalities when citizens across the Kingdom owe JD120 million in property tax debts. He noted that work on the draft legislation began in 2023, aiming to achieve justice, stimulate investment, and maximize growth in partnership with the private sector.
The minister highlighted that the draft legislation primarily targets municipalities, intending to eliminate arbitrary assessments and human intervention in the taxation process. Al-Masri reiterated the government’s commitment to not imposing new taxes but rather reducing them. He cited 12 recent government decisions that directly benefited citizens, despite some having adverse effects on the treasury and municipal revenues, such as changes in customs, licensing, and public transport.
He further explained that the draft seeks to update an outdated law and introduce a fairer tax system that protects the rights of municipalities, landlords, tenants, and investors. It aims to distinguish between a building’s value and its rental revenue.
Al-Masri also mentioned that the draft offers higher incentives and discounts to citizens, including a reduction on the full tax amount, which covers education and sewage fees.