15-Dec-2018
Abu Ali: a system of incentives for the industrial sector issued soon
Jegbir: We demand protection of the national industry against unfair competition
Eng. Fathi Jegbir, head of the Amman Chamber of Industry, stressed the importance of approving the tax incentives system for the industrial sector, with the expiry of the last extension of the Income tax exemption scheme at the end of this year.
During a meeting with the Director general of the income tax and sales department, Hussam Abu Ali, in the industrial sector, in the Excellency of Chamber Secretary Tamim Qasrawi, board member Sa’ad Yassin and the Director general of the Chamber Dr. Na'el al-Husami, said the income tax law was passed before the adoption of a national programme An alternative to supporting national industries will lead to the loss of competitiveness of the sector and hope for its development and diversification and the raising of the added values that contribute to the gross domestic product, and the Jegbir stressed the need to speed up the reimbursement of tax-related industrialists, some of which are due to years earlier.
Hassam Abu Ali, director general of the income and sales tax service, said that a system of incentives for industrial sector is currently being studied with a view to stimulating this vital and important sector, and that it will coordinate with the chambers of Industry and the Ministry of Industry, Commerce and supply before approving the system.
He said the new tax law has dealt with the definition of tax evasion, and has also made it a penalty for a slacker, in addition to providing a special exemption for families with disabilities, and for the amount of JD (2000) per person with disabilities.
With regard to the income tax levied on factories in the free zones and development zones, Abound explained that the new law addressed the distortion of the tax burden between factories within these regions and beyond, by raising the percentage of income tax on manufacturing industries in the development zones to 5% while raising The percentage of income tax on other enterprises is up to 10%.
With regard to the export industries, Ababil said that the income tax on the factories of pharmaceuticals and Knitting was reduced to 10% in 2019, while the tax rate for the rest of the sectors was raised from 14% to 15% in 2019, in order to reduce the tax burden on these two most export sectors, especially as Their export earnings were previously exempted.
During the workshop, the industrial questions were answered regarding the taxation and entitlement of the tax, the tax refund and the set-off procedure in the tax department.
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