MPs insist on amendments to tax bill, compromise on industry levy

AMMAN — The Lower House on Sunday insisted on amendments to the Income Tax Law after it was referred back from the Senate, except for the one pertaining to the tax on the industrial sector.

MPs agreed to the amendment on the industrial sector tax after the government pledged to issue a by-law to grant tax incentives, the Jordan News Agency, Petra, reported.

Later in the day, the Senate’s Finance and Economy Committee endorsed the 2018 amendments to the Income Tax Law as referred from the Lower House, and recommended the Senate endorse its decision, Petra added.

Tax on industrial activities, except pharmaceuticals and clothes, is set in the new amendment at 25 per cent for 2019, 20 per cent for 2020, 15 per cent for 2021, 10 per cent for 2022 and 5 per cent for 2023.

As for the pharmaceuticals and clothes industries, the levy will be 50, 30, 20, 10 and 5 per cent between 2019 and 2023, according to the Senate’s amendments approved by MPs.

Deputy Prime Minister and Minister of State Rajai Muasher said on Sunday that the government is committed to endorsing a by-law to grant tax incentives for the industrial sector before year-end, to guarantee that the sector “carries out its role”.

Muasher highlighted the importance of the sector, which employs some 250,000 people and contributes 24 per cent of the GDP, referring to a Cabinet decision that exempts the sector’s exports from 75 per cent of taxes, and to the gradual reduction of income tax in the new bill.

Lawmakers rejected  senators’ decision to impose a fixed tax of 10 per cent on capital profits resulting from stock trading, and to impose a 10 per cent tax on share profits distributed in cash by public shareholding companies, above a JD10,000 threshold.

MPs kept the minimum limit of taxation at JD500 for partnership and limited partnership companies that are registered in the Kingdom and practice any activity or investment the income of which is subject to taxation, disagreeing with senators’ decision to raise it to JD1,000.