Al-Saket Calls for The Exemption of Locally Manufactured Energy-Saving Lighting Units From Sales Tax

29-May-2019

The Vice Chairman of the Amman Chamber of Industry, Engineer Musa Al-Saket said that the amendment of the Renewable Energy Law has become an urgent necessity to support the national industry facing many challenges, especially the high cost of energy, especially electricity.

The high energy costs are the biggest challenge facing national industries and weaken their competitiveness in the domestic market and export markets, he said. He called for a comprehensive strategy for the energy sector in consultation with the various sectors concerned and with the industrial sector.

Engineer Al-Saket stressed that the current law is very unfair to the industry needs to be modified quickly. It has harmed the national industries working in the field of manufacturing energy-saving electrical appliances by encouraging imports of these materials at dumping prices.

He pointed out that the current law imposes on each plant for renewable energy systems, review the government departments and provide a manufacturing equation at each import or purchase of local to obtain exemption for the input of renewable energy systems.

He explained that the law also arranges administrative burdens and financial costs resulting from obligating local factories to stock some materials 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.

Engineer Al-Saket, who is also head of the Made in Jordan campaign, added that there is a contradiction between the Renewable Energy Law No. 13 of 2012 and its amendments and the provisions of the new law No. 50 of 2018. Al-Saket pointed out that Article 4 of the law provides for the exemption of all systems, Renewable energy sources At all, while the provisions of the system, the exemption of certain systems, equipment and equipment of renewable sources of energy has been subject to the prior approval of the Exemptions Committee.

The energy law and its amendments clearly stipulate exempting the input of renewable energy systems, and there is no term "input inputs" that have resulted in explanations of the exemption committees and affected the industry.

Al-Saket said that the current law did not help to localize the technology of manufacturing renewable energy sources, equipment and equipment, despite the fact that investment in renewable energy reached nearly $ 2 billion; it was not accompanied by a clear government orientation towards enhancing the presence of the local component in renewable energy projects.

He stressed that the rearrangement of the conditions of the work environment in energy is a first step, aimed at restoring momentum and stimulate demand for national industry, which will be reflected on the overall macroeconomic indicators and is in the interest of citizens and the economy,

In a related context, Al-Saket called for exempting the energy-saving and locally manufactured lighting units from the sales tax of 16% similar to those imported which are fully exempted.

He pointed out that the Jordanian products of the energy-saving lighting units outperform the imported ones and obtained certificates from international laboratories, besides achieving 85% of the savings exceeding the percentage required for exemption from sales tax.









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