Customs fee reduction to come into force next week — Ississ

Minister of Finance Mohammad Al-Ississ (left) gives a press conference on January 10, 2022. (Photo: Petra)
AMMAN — Minister of Finance Mohamed Al-Ississ announced on Monday that the government's decision to reduce and standardize customs fees will go into force next week after being published in the official gazette, according to the Jordan News Agency, Petra.اضافة اعلان

Ississ told journalists the decisions contribute to strengthening Jordanians' purchasing power and revitalizing trade and tourism. Ississ added that tax evasion and smuggling would be checked despite the many customs reforms.

The new reforms will guarantee the exemption of over 53 percent of imported goods from customs fees, while 40 percent of the goods will be subject to a 5 percent fee, said Ississ, highlighting that cars, alcohol, and tobacco will not be exempted.

He added that the decision does not cover commodities bought online, explaining that this is to encourage consumers to buy locally produced goods. He said this would create an "equilibrium between electronic and traditional trade."

Ississ added that this decision would positively reflect the private sector and the economy in general. He also confirmed during a press release held at the Ministry of Finance that “this decision is for the prosperity of Jordanians; by strengthening their purchase capacity, as well as to revitalize both trade and tourism sectors.”

The minister emphasized that reducing custom fee obligations to come as close as possible to the cost of tax evasion and avoidance will reduce smuggling and regulate the market.

The new decision includes three categories starting January 1, 2027, and they are 0 percent, 5 percent, 15 percent. Under the new decision, all materials “except those produced by the Jordanian industry in the engineering and construction industries, furniture, food, and some other industries” will be subjected to only to the 0 and 5 percent categories. 

According to Al-Mamlaka TV, Prime Minister Bisher Khasawneh announced on Sunday that the decision of the Council of Ministers to restructure customs fees to enhance the competitiveness of the economy is "part of a comprehensive customs reform plan" in Jordan.

He said that “the restructuring is part of a comprehensive custom reform plan that includes reviewing procedures to simplify them and ensure that powers are not abused.”

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