Gov’t to allocate JD57 million to support national industries

The government agreed to entirely exempt all industrial production inputs from customs duties. (Photo: Shutterstock)
AMMAN — Minister of Industry, Trade, and Supply Youssef Al-Shamali said that the government will allocate JD57 million from the general budget for 2022 to a fund to support the national industries, according to local news outlets.اضافة اعلان

At a meeting held at the Amman Chamber of Industry on Monday, Shamali said that as of March, reduction will be made on energy prices for the industrial sector and work an additional permit fees will decrease by JD100.

Shamali stressed the important role played by the industrial sector in supporting the Jordanian economy and employing national manpower.

“Jordan is proud of the achievements made by this sector, which exports to about 140 countries in the world,” Shamali said.

According to the minister, industrial production inputs will continue to be exempt from any customs duties, and Jordan Enterprise Development Corporation will continue to support the industrial sector by covering part of the shipping costs through its flagship program "We ship your export."

Regarding restructuring of customs duties, the minister said that no decision has yet been taken in this regard, but tariff categories are expected to be reduced to four instead of the 18 now. According to Shamali, 90 percent of the Kingdom's imports are exempt from customs duties.

The minister said that restructuring customs tariffs will not affect Jordanian industries, but if there will be the slightest impact, accompanying measures will be announced to compensate for it.

"The government is keen to facilitate the work of this sector by addressing the most important obstacles it faces, most notably the costs of production, employment and financing, so starting with March, a program will be launched by the Central Bank to assist the industrial sector during the COVID-19 pandemic,” Shamali said.

The government also agreed to extend the period for submitting tax refunds on exports, to include 2021, and to entirely exempt all industrial production inputs from customs duties, said Shamali.

Head of the Jordan and Amman Chambers of Industry Fathi Al-Jaghbir said on Tuesday that the chambers of industry reject any reduction in customs duties on imported goods that are also produced locally, especially since many countries support their industries and have lower energy prices, which makes it difficult for local goods to compete with imported products in the local market.

Jaghbir added that the industrial sector employs most national workforce, so any decision that negatively affects this sector is bound to increase unemployment rates.

Read more National news