Khaberni - Dr. Hossam Abu Ali, the General Manager of the Income and Sales Tax Department, said that the Jordanian legislator has considered in the general sales tax law to provide social protection for citizens by including over (300) goods or services from basic and food items consumed by the poor and low-income classes in the schedules specified in the law, to be either exempt from tax or subject to a zero rate or reduced tax.
Abu Ali added, referring to what was published on a website about the goods and services tax in the general budget for 2026, out of transparency, professionalism, and scientific honesty, we must clarify the facts. The post by an "economic expert" seems to represent a superficial and shallow overview of the numbers, the scientific concept, and the international practice of taxes and the legislative and financial objectives of the tax system, whether it is the sales tax or the value-added tax in the kingdom or in other countries. For example, the principle of imposing the income tax depends on the income base, and thus the evaluation of this tax achieves harmony between income and tax in a progressive manner.
He explained that in global practices for sales tax or value-added tax, the principle of imposing this tax on sales and consumption tax for goods and services, therefore, the criterion for evaluating this tax relies on the principle of consumption and tax justice requires that if any good or service is consumed by any person, the tax should be equal to the tax paid by another person, and thus the sales tax or value-added tax when evaluated for the principle of consumption and since it is a proportional tax and not a flat tax, it is fair so that the tax rate on goods is 16%.
And the rich or those with high incomes consume goods of high value, and therefore the amount of tax paid by them is more than those who consume goods of lesser value.
And Abu Ali said that discussing sales tax requires, if it is by an expert or analyst, to be in a comprehensive manner that delves into and highlights the main schedules set forth by the Jordanian legislator and attached to the law, which enable achieving the social, economic, and financial goals of this legislation.
Therefore, there are over (300) goods or services from basic and food items that are consumed by the poor and low-income classes under the schedules specified in the law, either exempt from tax or subject to a zero rate or reduced tax, intending from these schedules to protect the poor and low-income from this tax burden within the social objectives targeted by the sales tax.
Accordingly, for the importance of setting the facts in the Jordanian tax legislation in a way that does not distort or imbalance for the citizen or the educated and to avoid addressing the topics listed in the legislation or budget law superficially and unfairly which leads to conveying a wrong message and is not based on any scientific or legislative basis. The Income and Sales Tax Department has issued this clarification with an emphasis on the department's readiness to provide precise files and scientific concepts to any researcher or information seeker or writer.
