Amman: Jordan has implemented a tax reform plan that avoids imposing new taxes or increasing existing rates, according to an announcement by Hussam Abu Ali, the Director General of the Income and Sales Tax Department.
According to Jordan News Agency, the reform plan aims to enhance voluntary compliance among taxpayers, broaden the tax base, and improve the efficiency of tax auditing and inspection. Key objectives also include combating tax evasion and addressing loopholes allowing tax avoidance.
Abu Ali detailed the success of the first phase of the reforms, which has contributed to an improvement in direct tax revenues and increased their share in total tax receipts. The reforms are based on progressive tax increases, expanding the number of progressive tax brackets to ensure economic benefit and tax justice for taxpayers.
Moreover, the tax reform plan includes protective measures for over 300 basic goods and services, which are either fully exempted or receive tax relief. These goods and services are essential for poor and low-income groups. Abu Ali emphasized the legislative framework established to protect these groups from additional tax burdens on essential commodities.
In contrast, the reform plan imposes special taxes on harmful, luxury, or non-essential goods, aligning with the legislation's economic, social, and fiscal objectives. This approach ensures that the tax system supports the social goals of the Jordanian government while maintaining fiscal responsibility.