Abu Ali: Tax Reforms Aim to Achieve Justice in Line with the Economic Modernization Vision
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Dr. Hossam Abu Ali, Director General of the Income and Sales Tax Department, stated that the adopted tax reforms are based on a fundamental principle: not to impose new taxes or increase existing ones, while achieving tax justice. This approach aligns with the vision of economic modernization.اضافة اعلان
During a dialogue session organized by the Jordanian Association for Science and Culture, attended by Eng. Samir Al-Habashneh, President of the Association, and moderated by Eng. Abdel Fattah Al-Daradkeh, Abu Ali emphasized that the absence of new taxes or tax increases in recent years is a clear indication of the effectiveness of the tax reforms introduced by the government to the Kingdom’s tax system.
He explained that the Income and Sales Tax Department has been able, through the adoption of a set of tax reform projects, to achieve tax justice and transition to a digital department. This has been accomplished by providing tax services electronically, establishing electronic connections with relevant departments and agencies, using electronic auditing through artificial intelligence, implementing digital monitoring of factories, and adopting electronic invoicing via the National Electronic Billing System.
Abu Ali highlighted that a technical program has been completed to implement digital monitoring of cigarette production factories. The project involves applying an electronic monitoring system and procedures for management and operations within production sites (cigarette factories) using integrated software to verify the production process from the start to the tracking of products in the market through unique electronic markings on all products, thereby reducing the need for direct traditional oversight in factories.
Digital monitoring has now been implemented in all cigarette factories, and according to regulations, cigarettes may not be produced without the electronic monitoring system and the corresponding coding on each pack.
Dr. Hossam Abu Ali stated that the National Electronic Billing System is a reform initiative that does not aim to impose or increase taxes. It is an organizational system designed to electronically transfer and document invoice data and does not impose additional financial burdens on taxpayers subject to the system.
He further explained that the billing system was developed to ensure fairness among taxpayers and was designed to be simple and user-friendly, adaptable to the systems used by taxpayers without requiring any changes on their part.
Abu Ali announced that the Department has developed an electronic system for auditing tax returns using artificial intelligence. This system relies on risk-based management for verifying information and data submitted in tax returns, comparing them with information already available to the Department, according to defined risk criteria. The system has been implemented in two phases, with the first phase focusing on electronic auditing of companies’ and establishments’ income and sales files.
He also reviewed major achievements in the tax reform agenda, including numerous amendments to principles and procedures, building a comprehensive database for all economic activities, shifting the burden of proof to auditors, and assuming that taxpayers are truthful in the information provided unless proven otherwise. This has strengthened trust between taxpayers and the Department.
He stated that the level of tax auditing now "matches the best international practices," as the Department has moved from traditional auditing to using artificial intelligence in auditing procedures, which has accelerated the completion of tax returns while ensuring accuracy.
Abu Ali also noted that the Department has implemented reform procedures to address disputes between auditors and taxpayers, which are referred to the Directorate of Cases and Objections. This directorate is staffed with highly skilled personnel with broad authority to resolve disputes, reducing the number of cases that escalate to court.
He clarified that tax evasion is defined as violating the law, whether through falsifying invoices or financial data, hiding information, or submitting incorrect data to avoid or reduce tax liability. Tax avoidance, on the other hand, involves exploiting legal loopholes to reduce tax obligations.
He emphasized that the main principle of tax reform was to empower the Department to combat tax evasion by providing all necessary tools to close loopholes, along with the required human resources and systems.
Abu Ali also stressed that taxes—whether income or sales—are not paid equally by the rich and the poor. He confirmed that taxes do not affect or target low-income individuals. For example, a married person with an income of 18,000 JD plus 5,000 JD in bills (totaling 23,000 JD) is exempt from income tax.
He pointed out that there are schedules listing many goods and services consumed by middle- and low-income groups that are exempt from the general sales tax. Additionally, some goods are subject to a reduced tax rate rather than the standard 16%. All health and medical services, as well as court services, are exempt from sales tax.
At the end of the lecture, Abu Ali answered several questions and inquiries from the Association members and attendees.
During a dialogue session organized by the Jordanian Association for Science and Culture, attended by Eng. Samir Al-Habashneh, President of the Association, and moderated by Eng. Abdel Fattah Al-Daradkeh, Abu Ali emphasized that the absence of new taxes or tax increases in recent years is a clear indication of the effectiveness of the tax reforms introduced by the government to the Kingdom’s tax system.
He explained that the Income and Sales Tax Department has been able, through the adoption of a set of tax reform projects, to achieve tax justice and transition to a digital department. This has been accomplished by providing tax services electronically, establishing electronic connections with relevant departments and agencies, using electronic auditing through artificial intelligence, implementing digital monitoring of factories, and adopting electronic invoicing via the National Electronic Billing System.
Abu Ali highlighted that a technical program has been completed to implement digital monitoring of cigarette production factories. The project involves applying an electronic monitoring system and procedures for management and operations within production sites (cigarette factories) using integrated software to verify the production process from the start to the tracking of products in the market through unique electronic markings on all products, thereby reducing the need for direct traditional oversight in factories.
Digital monitoring has now been implemented in all cigarette factories, and according to regulations, cigarettes may not be produced without the electronic monitoring system and the corresponding coding on each pack.
Dr. Hossam Abu Ali stated that the National Electronic Billing System is a reform initiative that does not aim to impose or increase taxes. It is an organizational system designed to electronically transfer and document invoice data and does not impose additional financial burdens on taxpayers subject to the system.
He further explained that the billing system was developed to ensure fairness among taxpayers and was designed to be simple and user-friendly, adaptable to the systems used by taxpayers without requiring any changes on their part.
Abu Ali announced that the Department has developed an electronic system for auditing tax returns using artificial intelligence. This system relies on risk-based management for verifying information and data submitted in tax returns, comparing them with information already available to the Department, according to defined risk criteria. The system has been implemented in two phases, with the first phase focusing on electronic auditing of companies’ and establishments’ income and sales files.
He also reviewed major achievements in the tax reform agenda, including numerous amendments to principles and procedures, building a comprehensive database for all economic activities, shifting the burden of proof to auditors, and assuming that taxpayers are truthful in the information provided unless proven otherwise. This has strengthened trust between taxpayers and the Department.
He stated that the level of tax auditing now "matches the best international practices," as the Department has moved from traditional auditing to using artificial intelligence in auditing procedures, which has accelerated the completion of tax returns while ensuring accuracy.
Abu Ali also noted that the Department has implemented reform procedures to address disputes between auditors and taxpayers, which are referred to the Directorate of Cases and Objections. This directorate is staffed with highly skilled personnel with broad authority to resolve disputes, reducing the number of cases that escalate to court.
He clarified that tax evasion is defined as violating the law, whether through falsifying invoices or financial data, hiding information, or submitting incorrect data to avoid or reduce tax liability. Tax avoidance, on the other hand, involves exploiting legal loopholes to reduce tax obligations.
He emphasized that the main principle of tax reform was to empower the Department to combat tax evasion by providing all necessary tools to close loopholes, along with the required human resources and systems.
Abu Ali also stressed that taxes—whether income or sales—are not paid equally by the rich and the poor. He confirmed that taxes do not affect or target low-income individuals. For example, a married person with an income of 18,000 JD plus 5,000 JD in bills (totaling 23,000 JD) is exempt from income tax.
He pointed out that there are schedules listing many goods and services consumed by middle- and low-income groups that are exempt from the general sales tax. Additionally, some goods are subject to a reduced tax rate rather than the standard 16%. All health and medical services, as well as court services, are exempt from sales tax.
At the end of the lecture, Abu Ali answered several questions and inquiries from the Association members and attendees.
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