The Cabinet of Jordan extended the exemption of unlicensed vehicles from additional fees until January 30, aiming to improve vehicle registration compliance. Amendments were made to investment incentives for small and medium-sized projects, removing the JD15 million minimum investment requirement. Additionally, measures were taken to resolve tax disputes with companies and support local development projects in the Jordan Valley.
On December 24, 2024, the Cabinet, presided over by Prime Minister Jafar Hassan, announced the extension of an exemption for unlicensed vehicles from additional fees until January 30. This extension pertains not only to newly unlicensed vehicles but also applies retroactively to those that have been unlicensed for over a year, waiving acquisition and re-registration fees. The aim is to encourage vehicle owners to regularize their registrations, thereby enhancing road safety and simplifying licensing processes for long-untaxed vehicles.
In addition to the vehicle licensing measures, the Cabinet approved amendments to the investment incentive policy for small and medium-sized industrial projects within the Karak Industrial Institution. The previous requirement for a minimum investment of JD15 million has been eliminated. As a result, projects that achieve a local added value of at least 40 percent and employ a minimum of 150 Jordanian workers—70 percent of whom must be local residents—will now receive benefits including reduced costs for electricity and water, as well as labor subsidies.
The Cabinet also took steps to bolster economic growth by endorsing recommendations from the settlement and conciliation committee regarding the resolution of outstanding matters between 270 companies and taxpayers with the Income and Sales Tax Department. This initiative reflects the government’s Economic Modernisation Vision and is expected to enhance tax compliance throughout the region.
Furthermore, the Cabinet approved a plan by the Jordan Valley Authority to allocate 3,024 dunums of land in Ghor Al Ghamr and Qreiqra to the Wadi Araba Development Company to facilitate palm and fruit cultivation projects. Additionally, the free zone license for the Jordan Duty-Free Company was renewed, allowing for continued operations at Marka Civil Airport until April 30, 2025. Finally, a grant of 200,000 euros from the Spanish government via the Spanish Agency for International Development Cooperation (AECID) was approved to support the modernization of the National Centre for Human Rights in Jordan.
The recent Cabinet decisions are aimed at addressing ongoing economic challenges and improving public compliance with vehicle licensing regulations in Jordan. The fee exemption for unlicensed vehicles reflects a strategic approach to encourage compliance among vehicle owners, particularly those who have not licensed their vehicles for an extended period. The amendments to investment incentives for small and medium-sized enterprises signal a shift towards greater accessibility and support for local economic initiatives, fostering job creation and local development. Furthermore, the Cabinet’s move to resolve ongoing disputes between companies and government tax agencies demonstrates a commitment to enhancing the business environment and encouraging investment.
In conclusion, the Cabinet’s recent decisions serve to strengthen economic stability and encourage compliance with vehicle licensing regulations through the extension of fee exemptions. Additionally, the amendments to investment policies highlight a commitment to supporting local enterprises and improving the overall business climate in Jordan. The proactive measures aimed at resolving disputes in pending tax matters reflect a broader initiative to modernize the economic framework, align with the government’s vision, and stimulate sustainable growth.
Original Source: jordantimes.com
