Gov’t looking into extending tax exemption on revenues of ICT exports

AMMAN — With the government announcing that it was looking into extending the tax exemption on revenues from ICT exports, the Arab Advisers Group called for deciding soon on the matter.

The current tax exemption will last until the end of 2015 and so far no decision has been taken on extending it, Jawad Abbassi, founder and general manager of Arab Advisers Group, told The Jordan Times on Thursday.

“The decision should have been taken a long time ago,” Abbassi said.

Earlier this week, ICT Minister Majd Shweikeh said the ministry was working on extending the tax exemptions.

Shweikeh, who made the remarks at a meeting with the ICT Association of Jordan (int@j), added that the ministry is keen on re-energising the ICT sector, which has declined over the past few years due to economic conditions and the situation in neighbouring countries.

Abbassi said extending the exemption is critical at this stage.

“Many ICT companies have businesses abroad like in Dubai and elsewhere… ICT exports are rising in spite of regional conditions… But if there are taxes, the situation will totally change,” he warned.

“If there are no tax incentives anymore, ICT companies will find it easier to relocate to another country.”

According to the latest available figures, the IT sector registered positive growth in 2013, with revenues growing by 3 per cent to $638 million, compared with $617 million in 2012.

Domestic revenue accounted for $313 million of the total IT revenues in 2013, registering a 1 per cent decline, compared to 2012.

IT exports grew by 8 per cent to $324 million in 2013, compared to $300 million in 2012, according to a survey by int@j and the ICT Ministry.

The survey showed that 26 per cent of Jordan’s total ICT exports went to Saudi Arabia, followed by the US (21 per cent), Iraq (12 per cent), Nigeria (7 per cent), the UAE (6 per cent), the British Virgin Islands (5 per cent), Palestine (4 per cent), Qatar (2 per cent), Morocco (2 per cent) and Lebanon (1.5 per cent). 

The rest of the exports were distributed over 37 regional and international countries.