AMMAN - The Foodstuff Traders Association and importers of essential items agreed on Sunday with the Ministry of Industry and Trade that rice and sugar will be sold to citizens with nonremovable price labels.
The prices, which have yet to be set, will most likely be calculated on the basis of cost plus 8 per cent, according to Association President Khalil Haj Tawfiq.
He stressed that traders will commit to the prices and be subject to huge fines if they sell the staples for a price higher than the ones indicated on the price tag.
"This is only a suggested figure and we think it will be a fair price for all stake- holders. However, it might be adjusted in our next meeting with the minister of industry and trade on Tuesday," Haj Tawfiq told The Jordan Times on Sunday.
During its weekly meeting last Tuesday, the Cabinet decided to exempt several essential commodities from customs duties and sales tax as part of several planned measures to curb price hikes, a move that was coupled with an increase in taxes on nonessential items such as alcohol, tobacco, video games and satellite receivers.
He added that importers will soon price other essential items such as powdered milk and vegetable oil.
Haj Tawfiq said that during the meeting, traders and importers also agreed to issue a price guide through the ministry to be published in local newspapers on a daily basis.
"Prices in the guide will not be mandatory for traders to follow, rather it will provide the public with an estimate of market prices," he added.
Retailer Saad Nassar told The Jordan Times that that it might take a month for citizens to feel a positive impact of the government's latest economic decision.
"I have large quantities of essential items which were included in the exemption decision that need at least a month before they are sold out," Nassar said.
Under the decision, essential items were exempted from custom duties, which ranged from 5-22 per cent, and 4 per cent sales tax, according to Haj Tawfiq.
Fearing the drop in prices may only be temporary, citizens said the markets need further monitoring and control.
Zarqa resident Hamzah Mahmoud said that unless ministry team intensify their inspections of retailers, the effect of the decision will fade within weeks.
"This is not the first time the government exempts essential items from tax," Mahmoud said, referring to a previous government decision which exempted 13 items from sales tax and custom duties.
Haj Tawfiq added that in Tuesday's meeting, importers will brief the ministry on the quantities of the exempted essential items in their warehouses, stressing that they aim to ensure that citizens benefit from the government's measures.
By Hani Hazaimeh
© Jordan Times 2008
