Tax Incidence in Jordan at 25% of GDP, Revenues from Income Tax at 4%: Study

تم نشره في Mon 16 October / Oct 2017. 12:00 AM
  • Ministry of Finance building in Amman - (Archives)

AMMAN —AlGhad— A study by the Arab NGO Network for Development on the implications of taxation policies in the region states that tax incidence in Jordan stands at 25 per cent of GDP, whereas income tax revenues do not exceed 4 per cent, indicating an increase in tax evasion.

Ideally, the two rates should be much closer to each other when there is balance between revenues from income taxes and average tax burden.

Tax incidence, or tax burden, is a concept that measures the overall weight of taxation polices per capita, on average, to GDP or GDI, including direct and indirect tax.