AMMAN — The
Jordanian Union of Restaurants and Confectionery Proprietors on Sunday called on the government to raise the
prices of traditional meals by 30 to 40 percent, equivalent to 200 fils, but
added that it “does not want to infringe on the peoples’ livelihood”, local
news outlets reported.
اضافة اعلان
During an
emergency meeting to determine the extent of the damage sustained by providers
of traditional foods and the next steps needed to “manage” prices, the union
also called on the government to exempt traditional restaurants from paying
fees on purchases, raise customs and sales tax on imported frozen chicken, and
exempt animal feed from customs duties.
It called for
setting price ceilings on suppliers and passing measures to combat monopolies.
The union also
called on the government to direct the
Social Security Corporation to cap
monthly deduction rates from restaurant owners, in addition to stopping legal
procedures against establishments operating in the sector, while giving them an
opportunity to correct their conditions.
They also called
on the Central Bank of Jordan to suspend loan repayments for a period of no
less than three months, including June.
The head of the
union,
Omar Al-Awwad, said the price list for traditional restaurants has been
in force since 2016 and must be amended, taking into account the price
increases that affected most foodstuffs, ranging between 50 and 320 percent,
according to a study submitted to the Ministry of Industry, Trade, and Supply.
Awwad told
Al-Mamlaka TV that the union had reached a dead end after several meetings with
the ministry, adding that an official letter will be sent to
Prime Minister Bisher Al-Khasawneh regarding their demands. “We will give the ministry one
week from today’s meeting to respond and to ensure the best interests of the
traditional restaurants sector before taking any escalatory measures in the
event of non-response,” he said.
A member of the
union said during the meeting that 4,000 restaurants have closed since the
beginning of the COVID-19 pandemic, and at least 10,000 restaurants are at risk
of bankruptcy. According to Awwad there are roughly 20,000 restaurants in the
country. He added that the sector provides job opportunities and contributes to
reducing unemployment.
During the
meeting, one restaurant owner, pointed the recent hike in electricity tariffs
and the effect on operating costs. “Restaurants’ profit margins have been
eroded and now we are heading for losses,” he said. “Meanwhile, the tourism
sector has raised its prices three times during the last period,” he added.
According to the union’s
study, energy costs have increased 42 percent between 2016 and 2022, rent has
increased by 20 percent between 2015 and 2022, and workers’ wages have
increased 37 percent between 2016 and 2022.
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