Jordan - Decision to reduce customs tariffs to come into for...| MENAFN.COM

Tuesday, 24 May 2022 12:25 GMT

Jordan - Decision to reduce customs tariffs to come into force next week — Finance minister


(MENAFN- Jordan Times)

AMMAN — Finance Minister Mohamad Al-Ississ on Monday announced that the decision to reduce and unify customs tariffs on goods will come into force next week, after the issuance of the decision in the Official Gazette, the Jordan News Agency, Petra, reported. 

During a press conference at the Ministry of Finance, Al-Ississ said that the decision comes to serve the interest of Jordanians first, by strengthening the purchasing power of citizens and stimulating trade and tourism sectors.

He stressed that reducing custom fees helps reduce tax evasion, which in turn would lead to reducing smuggling, adding that the ministry decided to cancel manufacturing costs in order to reduce the administrative burden on the Jordanian industry. 

According to the new tariff, all materials, except for those produced by Jordanian engineering, construction, furniture and food industries, will be subject to two tax percentages: zero per cent and 5 per cent.

The minister said that as a result of this decision, 53 per cent of the materials entering Jordan will be exempted and 40 per cent of them will be subject to a customs tariff of 5 per cent, indicating that this decision does not include cars, alcoholic beverages, tobacco and its affiliates, to name a few.

He pointed out that the other sectors will be subject to four categories of customs tariffs: 15 per cent, and 25 per cent during the first three years of implementation of the decision, after which the same category decreases from 25 to 20 per cent for the next two years after, and the 20 per cent category will decrease again to 15 per cent. 

In the year 2027, the customs tariff will be categorised into three percentages starting from January 1, 2027, which are 0 per cent, 5 per cent, and 15 per cent.

The minister said that this decision does not include goods that are purchased electronically and maintain their old tariffs currently in force, noting that the unification and reduction of tariffs will encourage consumers to turn to local goods due to their low cost, in addition to creating a balance between traditional and electronic commerce.

He added that the ministry will work with the Ministry of Industry and Trade, through its inspection teams, to ensure that this reduction in customs tariffs is reflected in the prices of the product in its final form, in a way that the people can notice. 

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