AMMAN — The
government’s decision to reduce customs duties for
several sectors has yet to prove any positive and tangible impact on the
economy a few months after implementation, sectors representatives say.
اضافة اعلان
It neither lowered prices for consumers nor
revived commercial activity, despite the advent of the holy month of Ramadan,
which traders used to rely on in the past years to move the wheel of the
economy.
Representatives of several sectors stress
that the impact of the decision is still not clear due to the rise in prices,
and the higher cost of production inputs globally, following the
Russian-Ukrainian crisis, and urge the government to take immediate and drastic
solutions to help revive the economy.
The head of the Restaurant and Sweets shop
Owners,
Omar Awwad, told
Jordan News that reducing customs duties had no
effect on consumers, “due to the global rise in prices”.
“The restaurant sector did not feel the
effect of reduced customs duties either,” he said, adding that “prices even
increased”. For example, he said, the price of a ton of chickpeas rose from
JD400 to JD500, and a gallon of oil that was sold for JD22 now sells for JD32
“despite the fact that the Ministry of Industry and Trade has set the price cap
at JD29”.
Awwad added that “there is a tacit agreement
among merchants to sell at the highest price, and the problem here is that the
role of the Ministry of Industry and Trade authorities responsible for
monitoring merchants’ activity is totally hidden”.
That, he stressed, makes it incumbent on the
ministry to play a strong role in controlling the monopoly of some traders.
The head of the Freight Forwarders and
Logistics Association, Nabil Al-Khatib, told
Jordan News that traders
and consumers might feel the effect of reduced customs duties several months
later, reiterating that “the impact is still not reflected due to the global
rise in prices”.
He added that “there was an increase in the
prices of goods more recently imported due to the unprecedented rise in the
prices of production inputs and freight charges around the world”.
Head of the Syndicate of Merchants of
Cosmetics and Accessories Mahmoud Al-Jalis told
Jordan News that “there
is no real and clear impact of the government decision to reduce customs duties
so far” for the same reasons: the rise in freight charges, and in the prices of
commodities and raw materials.
Jalis said that even though citizens have
started to prepare for
Eid Al-Fitr, “the commercial movement is still very
weak”, and urged the government “to take more serious decisions to protect
merchants and increase liquidity for citizens”.
Amman Chamber of Commerce clothing sector
representative Asaad Qawasmi confirmed that demand for clothes is still very
weak, because citizens’ priorities seem to have changed; “they are more
interested in buying food and drinks at these times than buying clothes”.
Qawasmi, however, told
Jordan News that “we expect the turnout to increase in the second half of Ramadan and the
approaching Eid Al-Fitr”.
“I can say that we are currently going
through a stage of recovery after the difficult conditions resulting from the
COVID-19 pandemic, including lack of liquidity and weak purchasing power,” he
added.
According to Qawasmi, “prices are stable despite the rise
in freight charges and raw materials prices”, and the reason is “the
government’s decision to reduce customs tariffs, the presence of many offers
that encourage citizens to buy, and the high competition among traders”.
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