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Tax law changes will keep exempted segments untouched — minister

Momani says Cabinet has not discussed any proposed amended versions of Income Tax Law

By JT - Sep 07,2017 - Last updated at Sep 07,2017

AMMAN — Minister of State for Media Affairs and Government Spokesperson Mohammad Momani on Thursday stressed that the general tendency of the government regarding the Income Tax Law is to ensure that the exempted categories of individuals and families unaffected.

Individuals and families whose annual incomes do not exceed JD12,000 and JD24,000, respectively, will not be affected by any amendments to the current law, Momani said in an interview on Jordan Television’s “News and Dialogue”, as reported by the Jordan News Agency, Petra.

Any Cabinet decision in this regard will take into consideration the conditions of middle- and low-income classes, the minister said, stressing that the Council of Ministers has not received or discussed any draft law on the income tax.

He also said that neither the government nor ministerial committees had discussed any tax issues.

The spokesperson noted that the decision-making process has to go through several stages, which start when ministries send proposals to the Cabinet, stressing that such suggestions are not endorsed before being transferred to the Council of Ministers and ministerial panels.

Momani added that the proposal people are currently talking about reached the Cabinet in February, and the same copy has been resent recently for endorsement, yet it has not been discussed in the Cabinet or any other concerned institution.

The minister reiterated that there would be no legislative changes that may affect the middle- or low-income classes, adding that the government is going on with economic reforms and is keen on empowering such classes and improving their economic conditions.

It has been reported recently that the government was finalising new amendments to the 2014 Income Tax Law under which the tax exemption base would be expanded by lowering the threshold taxable income from JD12,000 to JD6,000 for bachelors and from JD24,000 to JD12,000 for households.

A local news outlet published Thursday what it purported to be a “letter of intent” sent by the government in June to the International Monetary Fund, declaring its commitment to tax reforms that entail redefining exemptions. 

Under the current law, a 7 per cent income tax is levied on the first JD10,000 a year after the exemptions are calculated, while the percentage is doubled for the first JD20,000 above the value of the exemption. Above that limit, the tax is set at 20 per cent. 

The first JD24,000 of the family’s income is exempted from tax, plus JD4,000 in health and education expenses that should be supported with bills. 

 

For unmarried persons, the exemption applies to JD12,000 plus JD2,000 supported by bills.

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