Khaberni - The Cabinet decided in its session held on Sunday, chaired by Prime Minister Jafar Hassan, to approve a customs duty of zero and apply a sales tax rate of 16% on the contents of postal parcels whose customs value does not exceed 200 dinar.
The decision aims to support and stimulate local consumption instead of foreign, achieving equality and justice among local merchants; contributing to stimulating local commercial activity and invigorating the local market.
The Cabinet also approved the recommendation of the Customs Tariff Council to make adjustments to the customs tariff tables; this is to support national industries and stimulate them, providing the necessary facilities to enable expansion, and to achieve fairness in competition between domestic and imported products. The decision includes the amendment of the customs tariff on imports that have a domestic alternative; this is intended to protect the national industry.
The decision to adjust the customs tariff will not include food goods that do not have a local alternative, in addition to exempting all clothing and children's necessities.
The decision also considers the interest of the national industry and trade, as 91% of the total imports of the kingdom are already exempt from customs duties either as inputs and production necessities, or imported from countries with free trade agreements with Jordan; all imports from Arab countries, the European Union, the United States, and Canada are completely exempt from customs duties and these countries have free trade agreements with Jordan.
Total production inputs in the national industry are exempt from customs duties; aimed at reducing the costs on national industries.
Regarding the goods imported on which customs duties were adjusted, the adjustment was made at reduced rates ranging between 5 – 10% only, even though before 2023, they were subject to high customs rates ranging from 20 – 30%.
This approach is part of previous steps taken by the government to support national industries including: approval to freeze the implementation of the decision to reduce the customs duty rate of 25% on categories of food materials, engineering, construction sectors, and furniture, and subject many assets and industrial production necessities to a zero tax rate under the Investment Environment Law, as well as adjusting the criteria for providing electricity on behalf of Rural Electricity Fund to support new industries and expand them; this is intended to support the industrial sector and increase its competitiveness.
The government has also granted incentives to new industrial projects in Hussein bin Abdullah II Development City in Karak Governorate and Tafilah Industrial City, which include: discounts on land prices, an increase in the period of inclusion in the support provided to local labor from three to five years, in addition to reduced electricity tariff rates, and incentives related to handling in Aqaba Port.
The previous decisions also included starting procedures to reduce energy costs on industrial cities such as: initiating procedures to supply Zarqa Industrial City with natural gas, launching a project to supply the industries in the Southern Industrial Zone in Aqaba with natural gas as part of the government's efforts to provide industrial areas with clean and sustainable energy.
The council also approved the settlement of 719 pending cases between taxpayers and the Income and Sales Tax Department, according to the recommendations of the committee in charge of studying these settlements based on the governing legislations.
This decision continues the measures taken by the government to enable business owners, taxpayers, and investors to rectify their tax status in case they have any violations, in the framework of alleviating their burden and allowing the sustainability of their businesses and economic activities.
