Gov’t reduces sales tax on 61 commodities
Amman, The Cabinet on Wednesday decided to reduce the general tax on sales on 61 commodities – currently subject to 10 and 16 percent tax – to 4 percent as of publication in the Official Gazette.
In addition to pushing the prices of these commodities down, the move aims at addressing the burden of blanket taxation. The commodities covered by the decision include, but not limited to, foodstuffs such as canned meat, fish, cheese, pasta, vegetables, fruits, food salt and tomato paste among other staples.
The Cabinet also granted fully-electric cars a total relief from customs duties provided that these vehicles should have been imported before 31, Dec., 2018. The exemption is only valid through April 31st this year.
Furthermore, the Cabinet also endorsed a mechanism needed to address requests by investors wishing to venture into the oil refinery domain. The decision comes after the relationship between the government and the Jordan Petroleum Refinery Company came to an end in April 2018.
The mechanism requires prospective investors to have the financial and technical capacity to launch such projects and that the government shall not provide any guarantees pertaining to the provision of raw materials for refining operations or to commit to buying refinery products of petroleum derivatives.
According to the mechanism, the government shall be relieved from any financial or contractual obligations as a result approving or licensing such projects.
The mechanism also entails that the operation of this refinery shall be on a profitable commercial basis, taking into consideration the presence of marketing companies that have the right to import and sell oil derivatives in the Kingdom.
Source: Jordan News Agency