Khaberni - The Cabinet decided, in its session held on Sunday chaired by Prime Minister Jaafar Hassan, to approve the annual cash support grant agreement with the United States of America to transfer an amount of $845 million as direct support to the general treasury for the year 2025.
The annual grant continues the strategic relationship between the Kingdom and the United States of America and the respect Jordan, led by His Majesty King Abdullah II, enjoys in the United States of America.
The Cabinet authorized the Minister of Planning and International Cooperation to sign the grant agreement on behalf of the government.
On another note, the Cabinet approved a zero customs duty and applied a 16% sales tax tariff on the contents of postal parcels with a customs value not exceeding 200 dinars.
The decision aims to support stimulating spending and local consumption instead of foreign, and to achieve equality and justice between local traders; contributing to stimulating local commercial activity and revitalizing the local market.
The Cabinet also approved the recommendation of the Customs Tariff Council to make amendments to the customs tariff tables; with the aim of supporting national industries and empowering them for expansion, and ensuring fair competition between the local product and imported goods. The decision also included amendments to the customs tariff on imports with local alternatives; with the aim of protecting national industry.
Furthermore, the decision not to include the amendment of the customs tariff will affect food items that have no local alternatives, along with excluding all clothing and children's supplies.
The decision also considers the interest of the national industry and trade, as 91% of the total imports of the Kingdom are originally exempt from customs duties being either inputs and production supplies, or imported from countries bound by free trade agreements; as all of the Kingdom's imports from Arab countries, the European Union, the United States of America, and Canada are fully exempted from customs duties due to free trade agreements.
Additionally, the total production inputs in the national industry are exempt from customs duties; in order to reduce costs on national industries.
Regarding the imported goods that have undergone changes in customs duties, the adjustment was made at reduced rates ranging only between 5 – 10%, despite being subject to large customs duties ranging between 20 – 30% before 2023.
This approach is part of previous steps taken by the government to support national industries including: the approval of freezing the decision to reduce the customs duty tariff of 25% on foodstuff categories, engineering sectors, construction, and furniture, and subjecting many industrial production inputs and supplies to zero-rated tax under environmental law, as well as adjusting the criteria for providing electricity on account of rural cent tariff to support new and expanding industries; aiming to support the industrial sector and enhance its competitiveness.
The government also granted new industrial projects in the Hussein bin Abdullah II development city in Karak province and Tafila Industrial City incentives including: discounts on land prices, an increase from three to five years in the inclusion of local labor support, reductions in electric bill rates, and incentives related to handling at the Aqaba port.
