15 January 2003
AMMAN — The Cabinet decided on Tuesday to exempt steel and cement used in prefabricated buildings from the General Sales Tax.
Ministry of Industry and Trade officials described the step as “positive,” saying it will lead, in one way or another, to a reduction in the prices of steel and cement in the local market.
However, Jordan Construction Contractors Association Vice President Dherar Sarayrah described the decision as “insignificant.” He said prefabricated houses are rarely built or even used by Jordanians.
“What we need is an exemption on the steel and cement used for all construction purposes,” he told The Jordan Times.
The Kingdom's annual demand for steel, used mainly to reinforce concrete in the construction of buildings, is estimated at 350,000 tonnes.
The price for grade 40 steel bars stands now at JD300 per tonne, and for grade 60 at JD305 per tonne. If the exemption is applied on the steel bars, the prices will drop by JD50 per tonne. “This is what we need,” said Sarayrah.
Late last year, a conflict arose between local steel companies and contractors over the companies' hike of steel prices.
Contractors described the increase at that time as “unjustified” and accused the steel companies of practising monopoly. But the companies said their decision to raise prices was in line with the hike in steel prices in the international market.
Also yesterday, the Cabinet delegated the Ministry of Energy and Mineral Resources to start negotiating with interested international firms to invest in building a 450 megawatt power plant in the Samra area in the industrial governorate of Zarqa.
The decision came after Tractebel of Belgium, a company specialised in power plants, transmission infrastructure, operation, maintenance and energy systems, decided late last year to withdraw from implementing the project, said one official.
The power plant is expected to cost around $300 million, and the government hopes to complete construction between 2005 and 2006 and to start generating electricity.
The plant, to be constructed on a build-operate-own (BOO) basis, will be designed to burn natural gas to be provided to Jordan from Egypt through a gas pipeline expected to be completed an reach Aqaba after six months.
Egypt is perceived as a country with huge reserves of gas. The country's proven reserves of gas are estimated at 52.5 trillion cubic feet.
The Cabinet also approved the establishment of a communications network linking all local universities. A non-profit company, owned by the universities, will be established to manage the network which will be utilised to offer higher education and scientific research services to students and university staff.
The Cabinet also appointed the Kingdom's Ambassador to the South Africa Ziad Majali as non-resident Ambassador to Mozambique and it exempted residents in the Aqaba Special Economic Zone from paying tariffs on their personal luggage, furniture and household items
if they decide to leave Aqaba to other parts of the country.
AMMAN — The Cabinet decided on Tuesday to exempt steel and cement used in prefabricated buildings from the General Sales Tax.
Ministry of Industry and Trade officials described the step as “positive,” saying it will lead, in one way or another, to a reduction in the prices of steel and cement in the local market.
However, Jordan Construction Contractors Association Vice President Dherar Sarayrah described the decision as “insignificant.” He said prefabricated houses are rarely built or even used by Jordanians.
“What we need is an exemption on the steel and cement used for all construction purposes,” he told The Jordan Times.
The Kingdom's annual demand for steel, used mainly to reinforce concrete in the construction of buildings, is estimated at 350,000 tonnes.
The price for grade 40 steel bars stands now at JD300 per tonne, and for grade 60 at JD305 per tonne. If the exemption is applied on the steel bars, the prices will drop by JD50 per tonne. “This is what we need,” said Sarayrah.
Late last year, a conflict arose between local steel companies and contractors over the companies' hike of steel prices.
Contractors described the increase at that time as “unjustified” and accused the steel companies of practising monopoly. But the companies said their decision to raise prices was in line with the hike in steel prices in the international market.
Also yesterday, the Cabinet delegated the Ministry of Energy and Mineral Resources to start negotiating with interested international firms to invest in building a 450 megawatt power plant in the Samra area in the industrial governorate of Zarqa.
The decision came after Tractebel of Belgium, a company specialised in power plants, transmission infrastructure, operation, maintenance and energy systems, decided late last year to withdraw from implementing the project, said one official.
The power plant is expected to cost around $300 million, and the government hopes to complete construction between 2005 and 2006 and to start generating electricity.
The plant, to be constructed on a build-operate-own (BOO) basis, will be designed to burn natural gas to be provided to Jordan from Egypt through a gas pipeline expected to be completed an reach Aqaba after six months.
Egypt is perceived as a country with huge reserves of gas. The country's proven reserves of gas are estimated at 52.5 trillion cubic feet.
The Cabinet also approved the establishment of a communications network linking all local universities. A non-profit company, owned by the universities, will be established to manage the network which will be utilised to offer higher education and scientific research services to students and university staff.
The Cabinet also appointed the Kingdom's Ambassador to the South Africa Ziad Majali as non-resident Ambassador to Mozambique and it exempted residents in the Aqaba Special Economic Zone from paying tariffs on their personal luggage, furniture and household items
if they decide to leave Aqaba to other parts of the country.
By Khalid Dalal
© Jordan Times 2003
