Lower House continues deliberations over income tax bill

AMMAN — The Lower House on Sunday continued its deliberations over the draft income tax law, endorsing a provision prohibiting the reduction of the value of taxes and fines imposed on individuals unless stipulated elsewhere in the legislation.

Deputies also endorsed an article exempting persons residing in the Kingdom whose annual salaries do not exceed JD12,000 from income tax.

A majority of MPs attending the session turned down a proposal by Deputy Mahmoud Kharabsheh (Balqa, 1st District), requesting that household and personal expenses be exempted from the tax, the Jordan News Agency, Petra, reported.

Responding to Kharabsheh’s proposal, Prime Minister Abdullah Ensour noted that tax exemptions in the law amount to JD24,000, thus  the exemption of personal expenses on travel, tourism and luxuries from the tax law is illogical.

He pointed out that the government has exempted a wide range of segments from income tax, including revenue generated from agriculture-related activities, adding that expenses related to productivity are subject to exemptions, while personal and non-productivity expenses cannot be cut down, Petra said. 

The premier also noted that an “exemption series” would add more burdens on the state budget, stressing that those who pay income tax in Jordan constitute only 2 per cent, according to Petra.

In Sunday’s evening session, deputies endorsed an article exempting donations to political parties, sports clubs, charity societies, and scientific and cultural activities from income tax, provided that these donations do not exceed 25 per cent of the taxable income.

Donations paid to political parties should also not exceed the permissible amount defined in the Political Parties Law. 

During last week’s session, a majority of MPs rejected a proposal by MP Tamer Bino (Amman, 5th District) to subject the privy purse to the tax law.

In objection to the proposal, MP Ali Khalaileh (Zarqa, 2nd District) noted that as the King is not involved in trade, the privy purse should not be subject to discussion during deliberations over the income tax bill

The House endorsed articles exempting professional associations, licensed societies and non-profit organisations and companies from income tax, in addition to private and public pension or saving funds.