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Jordan’s income, sales tax revenues rise to $1.75 bn despite COVID

Jordan’s Tax Revenues

Jordan’s income, sales and national contribution tax revenues have increased during the first quarter of 2021, to reach 1.252 billion dinars ($1.752 billion).

This is an increase of 159 million dinars ($222 million), compared to the same period in 2020, which was about 1.093 billion dinars (1.530 billion dollars).

Jordan’s tax revenues

Hossam Abu Ali, Director General of the Income and Sales Tax Department in Jordan, said today sales tax collections increased in the first quarter of this year, to reach 969 million dinars, compared to 810 million dinars in the same period in 2020.

In a statement, Hossam Abu Ali attributed the reason for the increase in tax revenues in light of the Coronavirus pandemic crisis to the ability of some of the economic sectors to face the repercussions of the pandemic in addition to the reform plan that the department implemented.

Abu Ali also pointed out the contribution of the reform plan to raising the percentage of voluntary tax commitment, and enhancing confidence between the department and the taxpayers.

This had a positive impact on applying the principles of settlements and reconciliation, in addition to the tax audit and inspection procedures taken by his department.

He explained that the percentage of collections during the first quarter of 2021 increased by more than 25%, compared to the percentage expected to be collected from income and sales tax in the General Budget Law for this year.

Sales tax collections during the previous quarter represented 25.3% of the amount estimated to be collected in the budget law throughout the current year from sales tax, according to the Director General of the Income and Sales Tax Department.

He added that the income tax revenue for the first quarter of 2021 was 25.5%, which is expected to be collected via the General Budget Law throughout the current year.

Earlier, Abu Ali announced that income and sales tax collections during 2020 amounted to about 4.668 billion dinars, compared to 4,323 during the year 2019, an increase of 8%.

The sales tax collections during the past year amounted to 3,530 billion dinars, compared to 3,302 billion dinars collected during 2019, an increase of 7%.


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