Economic Policy Development Forum Organizes Discussion on Taxation Policies in Jordan

Dr. Abu-Ghazaleh: A Committee of Experts for a Modern Law

Al Qudah: Reforming Tax System is a Continuous Process

AMMAN ---May 8, 2014--- The Economic Policy Development Forum (EDPF) held a discussion session on taxation policies in Jordan at Talal Abu-Ghazaleh Knowledge Forum.

The session which was chaired and moderated by Chairman of the Forum HE Dr. Talal Abu-Ghazaleh with the presence and participation of members of the Forum, economic sectors leaders, and taxation experts discussed tax rates, exemptions, promoting investments, reforming tax policies and tax evasion in addition to others.

HE Dr. Abu- Ghazaleh welcomed the attendees and said: "This session is a meeting for the experts to discuss a subject of great concern, as it is one of the means through which the state collects income."

He said: "We hope that the tax law will be modernized and developed in order to enhance the economy as unreasonable taxes decrease companies' profits, and therefore, it is essential to take into consideration the impact of taxation system on production. He also stressed that it is a national duty for citizens to pay taxes imposed on them, citing a quote by Franklin Roosevelt: "There are two facts no one can escape or evade from; loyalty and taxes".

Meanwhile, General Manager of the Income and Sales Tax Department HE Mr. Iyad Al Qudah expressed his gratitude and appreciation to the Economic Policy Development Forum chaired by Dr. Abu-Ghazaleh for this meeting giving a detailed presentation on the services delivered by the Tax Department, the importance of tax revenues in enhancing the status of the Treasury and in the reduction of budget deficit. He also referred to the reform programs and the challenges the Tax Department face.

In addition, Mr. Al Qudah praised the cooperation between the Income and Sales Tax Department and the Fiscal Reform Project II, which has been funded by USAID, over the past five years saying:" "This cooperation is a clear example of a success story, and it positively impacts in some areas on the performance of the department." He added that in addition to the technical support, USAID and Fiscal Reform Project II provide the Department with the support in order to improve its overall performance in terms of both the reform of tax management and tax policy."

The attendees also addressed the issues of productivity and tax rates, and their relation with the progressive tax system, social justice, distribution of income, exemptions, income tax policy as a way to enhance investment, commitment, and authorities granted by law.

At the end of the session, Dr. Abu-Ghazaleh thanked Mr. Al Qudah for his transparency, professionalism and credibility in presenting the current situation. Dr. Abu-Ghazaleh called for establishing a committee of experts to form and clarify the discussed ideas, opinions, suggestions, and outcomes, and present them to the Head of Tax Department to help form a modern income and sales tax law in compliance with the international standards.