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Cutting vegetable oil tax hikes liquidity — Haj Tawfiq

Oil
(File photo: Jordan News)
AMMAN — The National Society for Consumer Protection (NSCP) said a Cabinet decision to extend a zero general sales tax on vegetable oil will relieve citizens’ financially and result in a liquidity flow among traders.اضافة اعلان

On Sunday, a Cabinet session chaired by Prime Minister Bisher Al-Khasawneh decided to extend its decision related to reducing the general sales tax imposed on vegetable oils to zero, after it reached 4 percent in recent weeks. The decision will continue until the end of next November.

NSCP’s head Mohammed Obeidat welcomed the decision, saying that “it will relieve citizens of the successive rises in the price of oil, which posed an additional burden on their incomes.”

“We hope that consumers will notice this exemption directly from the effective date of the decision,” Obeidat told Jordan News.

He noted, however, that some traders may opt for manipulating the price. “We are used to some traders presenting flimsy arguments that the purchase was made at high prices, and that it is not possible to sell at the new prices, until the old quantity runs out,” he said.

Obeidat stressed the need to tighten control over markets; “to ensure that the sale is done according to the new prices”.

Jordan Chamber of Industry’s  representative of food, catering, agricultural, and livestock industries sector, Mohammad Walid Al-Jitan, said that the decision to cut the sales tax came to preserve the price of oil.

“This will be reflected on consumers and merchants, too,” he noted.

Head of the Amman Chamber of Commerce Khalil Haj Tawfiq told Jordan News that citizens “will not notice a significant impact on the prices after this reduction”.

“However, this will help in providing financial liquidity to the importer, therefore, it is a positive decision”, he added.

He pointed out that it was necessary to exempt oil from tax, since it is a basic staple, like sugar and rice.

“Reducing or canceling taxes will encourage importers to buy more quantities of food, and this will be reflected on the local food stock,” he explained.

Head of Jordan Chamber of Commerce Nael Al-Kabariti said that “the global price of oil rose significantly during the Ukraine crisis, and this decision came as a relief for citizens.”

“The international price of oil began to decline significantly recently, but did not reach the pre-war levels,” he explained in an interview with Jordan News.

He insisted that oil is a basic commodity, and reducing the tax rate to zero percent will provide liquidity to merchants. He noted that the continuity of the decision “depends on the global levels of oil prices.” 


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