Income Tax Committee at Abu- Ghazaleh Knowledge Forum Recommends A Revision to the Tax Amendments

AMMAN- Income and Sales Tax Committee at Talal Abu- Ghazaleh Knowledge Forum has called on the government to revise its recent decisions on increasing the sales tax, as well as the mechanism and timing of implementation, which have caused a confusion to all sectors in Jordan.

In a press release issued recently, the Committee stressed that the amendments on the general sales tax, are  likely to increase the number of tax evasion cases and this will cause negative impact on the tax revenues expected to be collected.  

The Committee added  that, all studies agree in most countries of the world that cases of tax evasion increase proportionally with the increase in taxes.

According to the Committee, the increase in tax will raise the number of tax evasion cases or shadow economy. Also, the instability in issuing laws and regulations, including tax laws will likely create an environment that drains investments as capital seeks a safe haven, and as a result a drop in income tax revenues is expected, especially with the difficult economic conditions which the country is going through for many years, and citizens' weak purchasing power and dwindling income.
  
The Committee highlighted the support of His Majesty King Abdullah II and thanked the King for directing the government to abolish the tax imposed on medicines, which are indispensable to any citizen and it comes in the best interest of the country and Jordanian people all alike.