Abu Ali: An incentive system for the industrial sector will be issued soon

Al-Jaghbir: We demand protection of national industry against unfair competition

Eng. Fathi Al-Jaghbair, Chairman of the Amman Chamber of Industry, stressed the importance of approving the tax incentives system for the industrial sector, in light of the last extension of the program of exempting export profits from income tax at the end of this year.

The meeting was attended by General Manager of the Income and Sales Tax Department Hossam Abu Ali in the Chamber of Industry, in the presence of Chamber Secretary Tamim Al Qasrawi and Board Member Saad Yassin and Director General of the Chamber Dr. Nael Al Hossami. National Industries will lead to the loss of the competitiveness of the sector and every hope to develop and diversify it and raise the added value that contributes to the gross domestic product. He stressed the need to expedite the payment of industrial dues to the tax, which is due to some years ago.

For his part, the Director General of Income and Sales Tax Department Hossam Abu Ali said that a system of incentives for the industrial sector is currently being studied to reduce the industrial costs in order to stimulate this vital and important sector and that coordination with the chambers of industry and the Ministry of Industry, Trade and Supply will take place before the approval of this system.

Abu Ali said that the new tax law has worked to address the definition of tax evasion. It also made it possible to impose penalties on the evader for the judiciary. In addition, it includes a special exemption for families with disabilities and 2000 dinars for the disabled.

With regard to the income tax imposed on factories in the free zones and development areas, Abu Ali said that the new law addressed the distortion of the tax burden between the factories inside and outside these areas, by raising the rate of income tax on manufacturing industries in the development zones to 5% while raising the income tax rate On other institutions to reach 10%.

In terms of export industries, Abu Ali said that the income tax on pharmaceutical and clothing factories was reduced to 10% in 2019. The tax rate on the rest of the sectors was raised from 14% to 15% in 2019, in order to alleviate the tax burden on these two sectors Especially as their export earnings were previously exempted.

During the workshop, the industrialists inquired about the imposition of the tax, the deduction, the tax refund and the clearing procedures in the tax department.

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