Khaberni - The Cabinet decided in its session held today, Sunday under the chairmanship of Prime Minister Dr. Jafar Hassan, to approve a customs duty of zero and to apply a sales tax rate of 16% on the contents of postal parcels with a customs value not exceeding 200 dinars.
The decision aims to support the stimulation of spending and local consumption instead of foreign, and to achieve equality and justice among local traders; contributing to the stimulation of local commercial activity and revitalizing the local market.
The Cabinet also approved the recommendation of the Customs Tariff Council to make adjustments to the customs tariff schedules; aiming to support national industries and stimulate them, and to provide the necessary facilities to enable their expansion, and to achieve fairness in competition between the local and imported products.
The decision includes the amendment of the customs tariff on imports with local alternatives; in order to protect the national industry.
The decision to amend the customs tariff will not include food items that have no local alternative, besides exempting all clothing and children's necessities.
The decision also considers the interest of the national industry and commerce, as 91% of the total imports of the kingdom are already exempt from customs duties either as inputs and production requirements, or imported from countries that have free trade agreements with Jordan; where all of Jordan's imports from Arab countries, the European Union, the United States, and Canada are completely exempt from customs duties as countries tied to Jordan with free trade agreements.
Also, the total production inputs in the national industry are exempt from customs duties; aiming to reduce costs on national industries.
Regarding the goods imported that have had their customs duties adjusted, the adjustments have been made at reduced rates ranging from 5 – 10% only, although they were subjected to high customs duty rates ranging from 20 – 30% before the year 2023.
This approach is part of previous steps taken by the government to support national industries including: approving the suspension of the decision to reduce the customs duty rate of 25% on categories of food materials, engineering and construction sectors, and furniture, and subjecting many inventories and industrial production requirements to a tax rate of zero in accordance with the investment environment law, and also adjusting the standards adopted for supplying electricity at the expense of Al Filas Al Reef to support new industries and their expansion; aiming to support the industrial sector and increase its competitiveness.
Additionally, the government has granted new industrial projects in the Husain bin Abdullah II Development Zone in Karak and Tafilah Industrial City incentives that include: discounts on land prices, extending the period of inclusion in the support provided to local labor for five years instead of three, in addition to reducing the electricity bill tariff, and incentives related to handling in the Aqaba Port.
Previous decisions also included initiating procedures to reduce energy costs on industrial cities such as: beginning procedures to supply Zarqa Industrial City with natural gas, launching a project to supply 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.
