JCC demands sales tax cuts for non-tourist restaurants

AMMAN — Exempting only tourist restaurants from 50 per cent of the sales tax rate while non-tourist restaurants remain responsible for paying the full 16 per cent tax rate leads to “unfair” competition, according to the representative of the food sector in the Jordan Chamber of Commerce (JCC), Raed Hamada.

“It is so unfair that non-tourist restaurants, which are budget-friendly for people with middle and low income, were not granted sales tax reduction,” Hamada told The Jordan Times over the phone on Tuesday.

Citizens are the ones who end up paying for the 16 per cent sales tax, so reducing its percentage would help them save money, Hamada noted. 

He added that the JCC has called on the government to grant sales tax cuts for non-tourist restaurants, which in turn has “only made promises that were not fulfilled”.

“This contradicts the articles of the Constitution, which call for equality of all citizens”, according to Hamada who stated that the JCC has been demanding sales tax cuts for non-tourist restaurants for over four months, and nothing has changed thus far.

“The government has completely ignored our demands,” he said. He noted that the local market is in need for decisions that would improve work in the Kingdom’s sectors.