The International Monetary Fund (IMF) said that the Jordanian government is seeking to implement a package of fiscal policies to boost revenues in the 2026 general budget, equivalent to 0.9% of GDP, allowing for a limited increase in capital spending.
اضافة اعلان
This was outlined in the IMF’s Fourth Review under the Extended Fund Facility (EFF) and the First Review under the Resilience and Sustainability Facility (RSF) arrangements with Jordan, as published by the Fund.
The revenue-enhancing measures include raising customs duty rates on durable and non-durable consumer goods, excluding basic food items—an adjustment that would increase the effective average customs tariff from 1.5% to 2.2%. The measures also include initial steps to rationalize customs exemptions granted during recent geopolitical tensions in the region, in addition to a decision implemented in July that addressed shortcomings in the vehicle taxation framework. Other steps include launching auctions for private and distinctive vehicle license plate numbers, as well as licenses for ride-hailing services.
The measures further include increasing the collection of special sales taxes on tobacco and alcohol products, alongside intensified efforts to curb illicit trade in tobacco products. The government will also continue implementing tax and customs administration measures under its Medium-Term Revenue Strategy to achieve short-term revenue gains.
The report noted that the pace of fiscal consolidation “will accelerate” in 2027 and 2028, with a cumulative adjustment of 1.8% of GDP, supported by credible measures under the government’s medium-term reform strategy.
It explained that this consolidation is based on the implementation of reforms aimed at further broadening the revenue base, in line with the government’s Medium-Term Revenue Strategy. These include continuing to expand the customs revenue base through the rationalization of exemptions, strengthening revenue collection from real estate transactions—particularly through modernizing the land registry system—broadening the sales tax base to further combat tax evasion, including through the strategic use of e-invoicing data, and continuing administrative efforts to enhance collection efficiency and compliance.
The IMF report indicated that the government intends to adopt a new framework for customs duty exemptions, aimed at identifying certain exempt or zero-rated goods with a view to gradually phasing them out starting in 2027. The Fund also pledged to provide technical assistance to implement the e-invoicing system in line with international standards, while ensuring the proper use of collected data in tax audit and matching processes.
The IMF added that these measures will be supported by ongoing structural fiscal reforms to strengthen tax and customs administration, as well as public financial management and public debt management. In particular, the Income and Sales Tax Department has been mandated to apply e-invoicing to the sale of goods and the provision of services by issuing regulations requiring electronic invoices to cover 100% of expenses declared in tax returns. This will enhance monitoring of economic activity, address under-invoicing practices, and strengthen audit and matching functions.
The Fund commended the efforts of the Income and Sales Tax Department to increase compliance, including through expanding the digitization of taxpayer services, improving data collection and analysis, leveraging digital solutions, and upgrading information technology infrastructure—most notably through the implementation of a new integrated tax management system.
It also praised the government’s continued implementation of the public sector modernization roadmap to enhance efficiency and accountability, particularly through the completion of the digitization of 80% of all automatable government services ahead of the end-2025 deadline.
The IMF further noted the government’s directive to adopt the national e-procurement system across all ministries and government entities by June 2026, and that the integration of the e-procurement system with the Government Financial Management Information System is set to be completed by the end of December 2025. (Al-Mamlaka)
