Cabinet endorses two bylaws to boost industrial sector

AMMAN — The Cabinet on Monday endorsed the 2019 bylaw for granting tax incentives for the industrial sector.

The move falls within the government's pledge to support and boost the industrial sector's competitiveness, which was made after it increased income taxes imposed on the industrial sector from 14 per cent to 20 per cent, the Jordan News Agency, Petra, reported on Tuesday. 

The bylaw grants incentives to stakeholders who achieve a 30-per cent local value addition by employing Jordanians, Jordanian female workers and people with disabilities. The incentives also apply to companies that mange to build links with local industries.  

Also on Monday, the Cabinet decided to issue a financial support bylaw to support industrial exports at 3 per cent for 2019 and 5 per cent for 2020, with exceptions for the pharmaceutical, garments and mining industries.

Garment companies outside of the development zones will be given financial support of 3 per cent of the value of their exports for 2019 and 5 per cent for 2020. As of 2021, financial support will be offered on the condition that the percentage of local workers surpasses the approved percentage by 1 per cent, and that the companies’ annual purchase of local products increases by 1 per cent.

As for the pharmaceutical industry, companies whose exports increase as of 2020 will be given financial support of 5 per cent of the value of the increase.

This bylaw aims at growing Jordanian exports, opening new markets, hiring Jordanian workers, as well as enhancing local industrial partnerships, Petra added.

Lauding the government’s efforts in this arena, President of the Jordan and Amman Chambers of Industry Fathi Jaghbir described the incentives as a “positive step towards increasing the competiveness of local industries inside and outside the Kingdom”, highlighting that the industrial sector employs 20 per cent of the Kingdom’s workforce, according to a chamber statement on Tuesday.