07-May-2019
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As energy costs rise,
which is the biggest challenge facing national industries and weakens their
competitiveness in the domestic and export markets, there is a need to prepare
a comprehensive strategy for the energy sector in Jordan, in consultation with
the various sectors concerned, especially the industrial sector.
The current law is
very unfair to the industry needs to be modified quickly; it affected the
national industries working in the field of manufacturing energy-saving
electrical devices, through the promotion of imports of these materials and
prices dumping, offered the national industries to compete unfairly.
The current law also
requires each manufacturer of renewable energy systems to review the government
departments and provide a manufacturing formula for each import or purchase
process to obtain a renewable energy system input exemption.
The law also imposes
administrative and financial burdens resulting from obligating local factories
to stock certain items and requiring a review of the income and sales tax
department at each local purchase, while the importer can enter his goods once,
giving him preference over the national industry.
In addition to the
above, there is a conflict between the Renewable Energy Law No. 13 of 2012 and
its amendments and the provisions of the new system No. 50 of 2018.
Article 4 of the law
provides for the exemption of all renewable energy systems, equipment and
equipment at all, while the provisions of the system have suspended the
exemption of some renewable energy systems, equipment and equipment to obtain
the prior approval of the Exemptions Committee. The Energy Law and its
amendments clearly state the exemption of inputs Renewable energy systems There
is no term "input input" that has been interpreted by the Exemption
Committees and affected the industry.
Overall, the current
law has not helped to localize the technology of manufacturing renewable energy
systems, equipment and equipment, although investment in renewable energy has
reached nearly $ 2 billion; it has not been accompanied by a clear government
drive to strengthen the presence of the local component in renewable energy
projects.
The rearrangement of
the working environment in energy is a first step, aimed at restoring the
momentum and stimulate demand for the national industry, which will be
reflected on the overall macroeconomic indicators and is in the interest of
citizens and economy, especially the operation and investment, especially
external.
* Head of "Made
in Jordan" campaign and writer in economic affairs
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