Gov’t Reviews Study on Upping Sales Tax on Manufactured Goods

تم نشره في Thu 9 November / Nov 2017. 01:00 AM
  • Minister of Industry, Trade and Supply Yarub Qudah - (Petra)

AMMAN —AlGhad— The Minister of Industry, Eng Yaroub Qudah confirmed to AlGhad that the government is looking into a study conducted by the Ministry of Finance on raising sales tax on manufactured and processed goods.

He reaffirmed to AlGhad that government has not decided yet on raising sales taxes, and that the decision, should it all be taken, will include “only” manufactured goods.

Options are on the table, Qudah explained, and the commodities excluded from the tax hike include rise, sugar, lentil, humus, beans and olive oil, among an extensive variety of basic goods and foodstuff.

AlGhad tried to make contact with the Minister of Finance to learn what commodities are included under “manufactured goods” but could not get through to him.

Meanwhile, the Association of foodstuff merchants said the government does not support any foodstuff with the exception of flower.

The Chairman of the Association, Khalil Hajj Tawfiq, said that tax discounts and exemptions on commodities are not subsidies.

In the meantime, Hajj Tawfiq underscored that nearly 40 per cent of the income of the middle and low income segments of society are spent on foodstuff and goods of the sort.

An increase in sales tax will only burden the citizen.

He also stressed that nearly 90 per cent of processed, canned, and manufactured foodstuff actually goes to the impoverished and lower-income segments of society.

These goods include canned sardine, macaroni, canned beans and dairy products, among other commodities, Hajj Tawfiq confirmed.

Hajj Tawfiq also underlined that the government has not consulted with any experts or civil society organisations on finding solutions increasing domestic revenues without straining the people’s income further.

Obviously, raising taxes on these commodities will hurt above all the frail income segments of society, as opposed to protecting them.