Tax burden eats up 24.2% of personal income

[06-04-2021 12:22 PM]

Ammon News - Finance Minister Mohamad Al-Ississ on Monday said that tax burden in 2020 totalled 24.2 per cent of personal income, citing the Income and Sales Tax Department’s (ISTD) figures.

The large portion of tax burden is related to purchases of goods and payments for luxury/non-essential services, Al-Ississ said, adding that tax burden also included payments for the social security department.

In response to Senator Ahmad Hindawi’s questions, during a Senate session, the finance minister said that sales tax revenues in 2020 reached JD3.533 billion, while income tax collections totalled JD1.138 billion, according to the Jordan News Agency, Petra.

He also added that a total of 1,372 tax inspections were conducted in 2020, which resulted in collecting JD408 million, compared with JD133 million generated in 2019 through 2,895 inspections.

Al-Ississ highlighted the efforts towards broadening the base and lowering the rates, as well as instilling a new tax culture based on reward and punishment, together with removing exemptions and exceptions, yet without increasing the tax burden.

Ninety per cent of the value of imports is not subject to customs duties, he said.

Al-Ississ also referred to changing the ISTD’s methods of risk management during the implementation of the plans designated to fight tax evasion, through analysing and processing companies and establishments’ data, as well as determining the parties to be included in the inspection tours and audits.

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