Improved living conditions tied to lowered taxes, energy costs — ACC

AMMAN — Expediently lowering sales tax, energy prices and customs fees are “vital” steps to stimulating the national economy in a way that enables it to overcome challenges and improve the living conditions of citizens, the Amman Chamber of Commerce (ACC) said on Wednesday. 

In a statement carried by the Jordan News Agency, Petra, the ACC stressed that Jordan needs a national economic reform programme that meets and realises His Majesty King Abdullah's aspirations, which he “clearly announced” during meetings with economic experts.

Improving the living conditions of Jordanians is among His Majesty's top priorities and would contribute to stimulating commercial activities that have declined over the past two years, which has negatively affected Treasury revenues, said the chamber.

The ACC called on the government to urge banks to reduce their interest rates, enabling economic sectors to secure the funds necessary to expand businesses and investments and increase their competitiveness domestically and externally, which would, consequently, create new jobs. 

Taxes should be tangibly reduced on items and services, and should be cancelled on food goods, medical equipment and children’s and school items, as rates on such commodities reach up to 51 per cent, according to the ACC. 

The chamber highlighted the importance of unifying customs fees at low rates to contribute to decreasing prices and limiting tax evasion, adding that the 5 per cent fee for customs service allowance on imported goods should be scrapped.

The ACC also noted that the decisions and procedures announced by the government earlier in the week included “positive aspects”, calling on the government to make quick decisions that take into consideration the level of recession and “remarkable decline” in the local market.