Taxing, insurance facilitations announced for private sector in Jordan

AMMAN - The government on Wednesday decided to postpone collecting sales tax from all local sectors and companies in the supply, health and medical sectors until they sell their goods, rather than upon signing contracts.

During a press briefing at the National Centre for Security and Crisis Management, Finance Minister Mohamad Al-Ississ said that the government also allowed companies on the Jordan Customs Department’s (JCD) golden and silver lists to pay only 30 per cent of their customs fees and postpone the remaining 70 per cent under a non-banking commitment.

For companies to benefit from the decision, they must have clear records in regards to customs evasion, the minister stressed.

Al-Ississ noted that the government has facilitated monitoring procedures by the Jordan Food and Drug Administration and the Jordan Standards and Metrology Organisation on inbound goods.

He also pointed to a series of procedures taken by the Central Bank of Jordan to provided needed liquidity, mainly for vital sectors in the food, commercial and energy fields.

Private sector companies were granted the authority to exclude their employees from old-age insurance for three months as of March 1, 2020, however, these companies must continue covering their employees with disability, death, work injury, maternity and unemployment insurances, he added.

Such procedures require lowering the insurance percentages imposed on companies from 21.75 per cent to 5.25 per cent, Al-Ississ said, noting that companies have the choice to pay their due subscriptions in instalments without any interest, provided they pay these subscriptions by the end of 2023.

The minister also said that the government allocated 50 per cent (some JD16 million) of revenues from maternity insurance to offer in-kind and material assistance to underprivileged elderly and ill people.

Al-Ississ stressed that Jordan is able to address the coronavirus and has enough resources, expressing appreciation to the private sector and the public for extending donations in support of the government’s efforts to confront the virus.

In this regard, he called on the private sector to coordinate with the Central Bank of Jordan to establish a board of directors for the private sector and a civil society fund to support efforts against the coronavirus, with the fund officially announcing donors.

The minister also assured the public that electricity in homes will not be cut off due to late payment, emphasising that “no suspension in service will be witnessed until June”.

He added that all proceedings related to social security defaulters will be halted, Petra reported.