MPs vote to ‘fully’ deduct landlords’ property tax from income tax

AMMAN — The tax paid by landlords on their rented properties will be fully deducted from the levy imposed on them under the draft income tax law under amendments to the bill deputies endorsed on Sunday.

During Sunday’s Lower House session, a majority of MPs voted in favour of the Economic and Investment  Committee’s amendments to the draft income tax law, recommending that 100 per cent of the total value of tax imposed on landlords’ rented and income-generating properties be fully deducted from the levy they are required to pay as income tax.

During the session, Prime Minister Abdullah Ensour called on MPs to endorse the provision as phrased in the government’s version of the law, which recommends that only 50 per cent of the tax on rented property be deducted from income tax.

Defending the government’s rationale, Ensour said that the 100 per cent deduction means depriving the Treasury of tax revenues.

Deputies also endorsed a provision in the bill obliging importers to pay a 2 per cent tax on the total value of their imports, to be collected by the Customs Department and then transferred to the Income Tax Department.

Any person with one income or more is required to submit a tax declaration issued by the Income Tax Department before the end of the fourth month of the tax accounting period, under the MP’s amendments, which also oblige every heir and general legatee to submit an inheritance tax statement to the respective registry office where the deceased person was last registered for tax purposes within 90 days from the date of death. 

Also on Sunday, the House referred the draft licence agreement the government signed with the Jordan Electricity Distribution Company (JEDCO) to its Energy and Mineral Resources Committee for review. 

Deputies criticised the government for renewing the licence granted to JEDCO, saying that the power provider failed its subscribers during last year’s snowstorm when there were several outages. 

Other MPs said the agreement does not fall within the Chamber’s jurisdiction as it is not a “concession right” that needs to be endorsed by MPs as stipulated in the Constitution.

Responding to lawmakers, Ensour said the decision to renew the JEDCO licence was taken with regard to the rights of around 20,000 shareholders. 

He added that the Council of Ministers deliberately decided to refer the agreement to the House to gain its approval of the measures taken by the government, which is “fully convinced” of their importance in saving the company and its shareholders’ assets.

MPs also decided to postpone looking into a memorandum signed by 38 deputies, requesting a motion of no confidence in Agriculture Minister Akef Zu’bi.