AMMAN — Customs revenues fell by 30 percent between
January and August this year, disappointing government hopes for shored up
income after restructuring tariffs, predicting that would culminate in an
increased purchasing power of citizens, a revival of
commercial activity, and
reduced smuggling.
اضافة اعلان
Al-Ghad News quoted
experts and workers in the commercial sector saying they believed that the
government’s plan was undermined by economic recession resulting from a decline
in the purchasing power of citizens, and local and foreign challenges facing
Jordanian importers.
They stressed that
high tax rates had an adverse effect on economic recovery, and that slashing
the levy would stimulate business activity.
The
Ministry ofFinance said revenues from customs duties at the end of August declined by 30
percent to JD142 million, compared with JD202.6 million recorded in the same
period of 2021.
Finance Minister
Mohamad Al-Ississ said the decision to
reduce and standardize customs duties will lead to a reduction in state
revenues, “if we look at the issue in theory, but in practice, the smuggling
operations taking place now will be greatly reduced when the customs obligation
increases”.
“Therefore, we hope
that this will reflect positively on the Treasury, and there will also be a
benefit deriving from the increase in commercial and tourism activity,” he
noted.
Earlier this year,
the government said it decided to reduce and unify the customs tariff on
several commodities. Imported commodities, like tobacco, vehicles, and alcohol
were excluded.
The head of the
Syndicate of Owners of Clearance and Transport of Goods, Daifallah Abu Aqoula,
said that the difficult economic conditions, and the decline in the purchasing
power reflected negatively on commercial activity.
Abu Aqoula said
that the decline in customs revenues caused by an economic stagnation, and in
turn pushed demand down, despite a decline in freight charges globally.
He said that the challenges facing importers
included the defense orders that prevent the imprisonment of the debtor. That
affected the circulation of checks among merchants, who have become more
cautious because of the high risks involved, and a lack of liquidity.
“The economy is an
interconnected chain, if one is affected, the imbalance will spread to
everyone,” Abu Aqoula said.
He pointed out that
four months ago, the effect became clearer with a modest business activity in
the summer.
Riyad Al-Qaisi, who
heads the General Syndicate of Electricity, Electronics, and Communications
Traders, said the receding commercial activity led to a decline in imports.
He said that the
high cost of diesel, hefty taxes, and low liquidity all contributed to an idle
state in the business sector.
“The government should
understand that the high taxes and the other costs on traders and importers
should not be ignored,” he said.
He questioned how
the government expects the purchasing power of citizens to be revived under the
prevailing circumstances, while the wages have not been increased for several
years.
He said that
traders are selling commodities at less than their actual cost to generate
cash.
Asaad Al-Qawasmi,
president of the Garment and Textile Merchants Syndicate, insisted that the
high tax is the reason for the decline in commercial activity, and in demand.
He said that customs revenues did not rise because imports decreased in view of
the prevailing conditions.
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