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The Jordanian House of Representatives passed the amended Income Tax Law 2018, during a meeting held in presence of the Jordan’s Prime Minister, Omar Al-Razzaz.
"Jordanians pay taxes representing 26 percent of GDP, with 74 percent being distributed as sales tax, allowances and fees on all categories in ways that does not differentiate between those who can and cannot pay while taking into account income tax justice," he said. “Income tax affects a maximum of 12 percent of the highest income earners, which does not include middle and low income groups, and takes into account the principle of escalation."
He added, “the Government will consider indirect taxes in the future in order to achieve justice”, stressing that, “prices cannot be raised after implementation of the amended Income Tax Law as it targets Net Profit”.
The new tax law is a first and necessary step towards building a new economic approach, that focuses on growth policy according to clear programs and priorities, with most of those affected by the sales tax not covered by the new tax law, which is also intended to move towards direct taxation.
Source (Al-Sharq Al-Awsat newspaper, Edited)