Amman, Dec 14 (Petra)- Director General of the Income and Sales Tax Department Hussam Abu Ali said the government has adopted a tax reform plan based on the principle of not imposing any new taxes or increasing current tax rates or percentages.
He said the plan relies on enhancing voluntary compliance by taxpayers, expanding the tax base, raising the efficiency of tax auditing and inspection, combating tax evasion, and addressing loopholes that enable tax avoidance.
In a post published on the department’s website on Sunday, Abu Ali said implementation of the first phase of the reforms has helped improve direct tax revenues and increase their contribution to total tax proceeds. He explained that reforms to direct taxation were based on the principle of progressive tax increases, with the number of progressive tax brackets expanded in a way that contributes to achieving economic benefit and tax justice among taxpayers.
He said the total number of basic goods and services covered by protection through full exemption or tax relief exceeds 300 basic or food items and services, noting that these are the most consumed by poor and low-income groups.
Abu Ali added that, in pursuit of the social objectives of Jordan’s tax system, the Jordanian legislator has established a legislative framework to protect poor and middle-income groups in a manner that does not impose a tax burden on their consumption of basic and food commodities.
He noted that, by contrast, the legislator has imposed a special tax on harmful, luxury, or relatively non-essential goods to ensure that the legislation achieves its economic, social and fiscal objectives.
//Petra// AF
