03-Jul-2019
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An
informed source confirmed that there is a serious study to remove the item
instead of fuel price differentials on the industrial sector to enhance its
competitiveness sector within the package of incentives considered by the
government to stimulate the sector.
The source pointed out to the
"opinion" that the removal of fuel prices instead of the sector will
provide the sector an estimated amount of 25 million dinars is currently
received this item, noting that the results of the study will be announced
soon, indicating that this measure will increase the export capacity of
industry and national and saves the costs In the sector.
The source added that repeated
claims submitted by the Jordan Chamber of Industry to the government to remove
this item from the energy bill to the factories after many complaints by the
manufacturers indicated the decline in competitiveness compared with similar
products in neighbouring countries, which led to weak competitiveness in
alternative markets to enter it And maintain its share in the markets to which
it exports, in addition to the weakness of competitiveness with imports from
abroad, which are sold at prices lower than the factory locally.
The source pointed out that
the government is currently considering alternative incentives instead of the
export support program which has been stopped from the industrial sector,
including this alternative, in addition to the establishment of a joint stock
company to promote exports in partnership with the private sector and the three
industrial chambers.
Last year, the government
installed fuel price differentials on electricity tariffs for small industries
so as not to exceed the total tariffs defined by the intermediate industries,
which currently amount to 99 fils per day, and 85 fils per kilo Night supply.
A study of the industrial
sector indicated a negative causal relationship between the prices of energy
and industrial production in Jordan, which is consistent with the results in
studies around the world.
The national industry is the
mainstay of the national economy and employs more than 18% of the Kingdom's
workforce, the majority of which is local labour, 25% of GDP, and nearly 90% of
national exports to foreign markets.
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