New draft law exempts further goods, services from taxes

By Omar Obeidat

AMMAN –– The Ministry of Industry and Trade announced on Wednesday it has prepared a new investment draft law that expands the number of goods and services exempted from taxes and customs duties.

The proposed legislation also offers more incentives to foreign investors.

According to the draft law, a copy of which was made available to The Jordan Times, goods imported by businesses, registered at the Department of Income and Sales Tax, will be subject to a zero rate tax, except for those identified by the Cabinet, which will also issue lists of the exempted services and goods.

Industry and Trade Minister Amer Hadidi indicated that small- and medium-sized businesses will be granted additional incentives. Investments in areas outside Amman will also receive further incentives.

At a meeting at the Jordan Chamber of Industry with private sector representatives to brief them on the new law and government measures to boost the economy and the budget, Hadidi said production inputs required by the industrial sector will be among the exempted goods.

According to the new law, foreign investors can transfer outside the country the entire capital they brought to the Kingdom or part of it, as well as profits or investment returns for investment purposes.

Investors will also have more liberty in managing their businesses and selecting the persons to oversee their investments, while the concerned authorities are required to provide all necessary facilities for this purpose, the draft law stipulated.

An investment window, or a one-stop-shop, concerned with obtaining the required approvals for investment registration will include representatives from all regulatory entities including municipalities, health, environment and public safety regulators among others.

If approved by Parliament, the 2010 draft investment law will cancel previous versions issued in 1995 and 2003, and will not include the Aqaba Special Economic Zone, development zones and Petra Development and Tourism Region.

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