Sales tax cut on 76 items will reflect on commodity prices - Jordan's tax department

AMMAN The Income and Sales Tax Department (ISTD) on Thursday confirmed that all 76 goods that the government announced on Wednesday would see a 50-per cent reduction in sales tax are in fact subject to the sales tax and are listed in tables published on the department's website.

The ISTD also refuted allegations recently circulated claiming that these commodities are not subject to the sales tax.

Under the decision, items that are subject to a 10-per cent tax will be subject to a 5-per cent tax instead, and those subject to a 4-per cent tax will be subject to a 2-per cent tax, the Jordan News Agency, Petra, reported.

Regarding the demands of some citizens to reduce the sales tax on other basic commodities such as rice, sugar and tea, the department confirmed that these goods are already exempt from sales tax.

The ISTD added that it will provide concerned authorities with the tables outlining the commodities subject to the reduction in sales tax. The authorities will then circulate them among merchants who sell these items to allow them to implement the reduced tax rates and reconfigure their prices.

The department added that it will be updating the tables of the goods and items whose sales tax was reduced according to the terms of its international classification and that these updates will be reflected on the ISTD website.

A government source also suggested that the Cabinet, at its session early next week, will approve the Wednesday's decision to reduce the sales tax imposed on various goods and items, Petra reported.