The Ministry of Industry, Trade and Supply on Wednesday revealed that it is currently looking into a request by the Jordanian Union of Restaurants and Confectionery Proprietors (JURCP) to allow tax-free popular restaurants and confectionaries to increase their prices by 5 to 10 percent.
The ministry added that any decision in this regard will ensure the interests of both, restaurants and final consumers, indicating that it will decide on the issue “soon”.
JURCP said the coronavirus crisis and ensuing lockdowns and closures forced “thousands” of popular restaurants to close down or place them under a taxed restaurant category, seeking higher prices. Restaurants that are subject to the 16-percent General Tax on sales are not bound by any fixed or ceiled prices unlike popular restaurants which follow flat prices set by the association.
JURCP President Omar al-Awwad said 2,000 restaurants were forced to shut down in the “past period” and that 15 percent of 20,000 restaurants that were in the market before the Covid-19 pandemic changed their taxation status to the taxable category.
A 5 to 10 percent price hike is a “fair” demand according to al-Awwad, who said popular restaurants had been under a heavy continuity burden. He further justified the demand that the sector incurred multi-million losses and forced to lay off thousands of employees.
Noteworthy, the popular restaurants and confectionaries sector employ more than 350,000 people, but 50 percent of them are foreigners, according to al-Awwad.
He said that the price hike demanded by the union “will not significantly” increase the price of popular restaurants, and that the Ministry of Industry and Trade should look at the demands with a view to “save” the sector, especially after a “significant” rise in inputs and operating costs.
Source: Jordan News Agency