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Gov’t says decision to raise fees on imported used cars ‘final’

By Mohammad Ghazal - Aug 25,2016 - Last updated at Aug 25,2016

AMMAN — The government will not rescind a decision to reduce tax exemptions on imported used cars, despite protests by car dealers, Finance Minister Omar Malhas said on Thursday.  

“We took the decision in June and we will not go back on it. Our decision is final, and the sales of used cars at the free zone are returning to normal and at rates similar to those before the decision,” Malhas told The Jordan Times.

“Around 325 used cars are sold per day…. When the decision was announced, and in light of the protest by traders, there was a slight drop but in July and August for example, sales of used cars at the zone are picking up and the situation is improving,” the minister said.

He added that the decision will “fulfil its objective” by the end of the year.

“We will generate the revenue we are looking for by taking this decision and it will yield fruit by the end of this year,” said Malhas.

The decision was one of several issued following a recent deal with the International Monetary Fund to extend a funding programme for the Kingdom, the minister added.

Earlier in August, the Jordan Free Zone Investors Commission claimed that the Treasury had lost around JD60 million since June due to the strike by used car importers in the free zone.

 

Importers and car dealers stopped selling cars from Jordan’s only free zone, which is in Zarqa, in protest against the government’s June 22 decision to reduce tax exemptions on imported used cars, which they said would hurt the sector.

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