The President of the Jordan and Amman Chambers of Industry, Engineer Fathi Al-Jaghbeer, praised the Cabinet’s decision to amend the customs tariff schedules following a review of the economic impact conducted over the past period.
اضافة اعلان
Al-Jaghbeer explained that this decision reflects the government’s policy of supporting national industry and complements recent measures aimed at strengthening the competitiveness of Jordanian industries in the local market and export destinations. He added that all countries protect their industries—especially when they offer high quality and reasonable prices—pointing out that more than 90% of imports into the Kingdom already enter duty-free.
He stressed that balancing support for industry with protecting citizens’ interests is a national necessity, noting that the government handled the customs tariff file professionally and responsibly. The latest decision came after the government suspended the tariff amendments approved in 2022 at the beginning of 2025 to reassess and evaluate their impact on the local market and the industrial sector, ultimately seeking a more balanced and fair approach for the national economy.
He clarified that limiting the amendments to goods with local alternatives, while exempting food items with no substitutes, fully exempting clothing and children’s supplies, and maintaining duty exemptions on industrial production inputs, clearly demonstrates the government’s commitment to safeguarding citizens’ essential needs while supporting Jordanian factories and ensuring fair competition with imports.
Al-Jaghbeer added that in 2024, the proportion of imports subject to customs duties according to tariff schedules was 10.7% of total imports, while 45.7% were exempt under the tariff schedules, 28.2% were exempt under free trade agreements, and 15.4% were exempt under Cabinet decisions or special laws. Therefore, the impact of the new decision will not result in any noticeable change in local prices for consumers—especially since the average customs duty rate will rise only from 3.8% to 4.5%, an increase of just 0.7 percentage points. Even after the adjustment, it remains lower than the average tariff rate in most neighboring countries.
He further noted that, based on the structure of imports during the first nine months of 2025, around 72% of goods subject to customs duties and not exempt under free trade agreements have local alternatives, while approximately 60.5% of imports consist of raw materials, capital goods, and intermediate goods that are not directly consumed. Consequently, customs duties account for no more than 2.9% of the overall tax burden in Jordan. Moreover, low-income households—which make up around 52% of Jordanian families—will not be affected, as most of their consumption consists of essential goods that are either duty-free or domestically produced.
Al-Jaghbeer emphasized that the local industry is capable of meeting domestic demand with high-quality and efficient products, as demonstrated during the COVID-19 pandemic and more recently during campaigns promoting national products as part of the new strategy to boost domestic demand for Jordanian goods under priority sector support initiatives within the Economic Modernization Vision. He highlighted the strong reputation of Jordanian products globally, with exports now reaching over 155 markets worldwide.
He stressed that supporting local industry will significantly contribute to attracting further industrial investments and enhancing domestic production, which in turn will create more job opportunities for Jordanian youth. The industrial sector is the largest generator of jobs nationwide, creating on average more than 16,000 jobs annually.
Al-Jaghbeer also stated that raising customs duties will not have a noticeable impact on local market prices, whereas the global increase in prices of imported goods has had a much more substantial effect on domestic inflation. This was evident in recent years when prices rose locally according to the Consumer Price Index (CPI) despite reductions in customs tariff rates.
He added that supporting local industry and purchasing national products benefits various economic sectors, given the strong direct and indirect linkages of industry with other sectors. Every one dinar spent on Jordanian products returns more than 2.17 dinars to the national economy.
