Cabinet Extends Vehicle Licensing Exemption and Approves Economic Initiatives
The Cabinet, led by Prime Minister Jafar Hassan, extended the deadline for unlicensed vehicles to register without fees until January 30, 2024. It also revised investment incentives for small and medium enterprises, eliminated the minimum investment requirement, and endorsed measures to resolve tax disputes among companies. A grant for human rights center modernization was also approved.
On December 24, 2024, during a Cabinet session helmed by Prime Minister Jafar Hassan, the government announced a significant extension of exemptions for unlicensed vehicles from additional penalties, allowing vehicle owners until January 30 to register their vehicles without incurring prior fees. This initiative aims to facilitate the regularization of vehicle statuses, enhance road safety, and simplify licensing processes for vehicles that have remained unregistered for over a year.
In addition to these measures, the Cabinet approved amendments to investment incentives designated for small and medium-sized industrial projects within the Karak Industrial Institution. The previous stipulation of a minimum JD15 million investment has been eliminated, enabling projects that achieve at least 40 percent local added value and employ a minimum of 150 Jordanian workers, with 70 percent of these workers being local residents, to receive financial benefits such as lower electricity and water costs as well as labor subsidies.
To foster economic growth, the Cabinet also endorsed recommendations aimed at resolving outstanding issues between 270 companies and the Income and Sales Tax Department, which is in line with the government’s Economic Modernization Vision designed to enhance tax compliance. Furthermore, the Cabinet approved land allocation plans by the Jordan Valley Authority for palm and fruit cultivation projects in Wadi Araba and renewed the Jordan Duty-Free Company’s free zone license at Marka Civil Airport until April 30, 2025. Lastly, a grant of 200,000 euros from the Spanish government was approved to support the modernization of the National Centre for Human Rights in Jordan.
The recent decisions by the Cabinet reflect the government’s ongoing commitment to enhance vehicle registration compliance and bolster investment in small to medium enterprises within Jordan. The extension of the vehicle licensing exemption aims to address the large number of unregistered vehicles on the roads, improving both safety and regulatory adherence. Moreover, revamping investment incentives is integral in stimulating economic growth, providing operational support for local industries, and enhancing job creation through stringent local employment requirements. The resolution of corporate tax disputes further underscores the government’s proactive approach to tax regulation and compliance.
In summary, the Cabinet’s recent decisions represent strategic efforts to streamline vehicle licensing processes, enhance investment opportunities, and foster compliance within the tax system. The extension of penalties for unlicensed vehicles and changes in the investment incentive framework aim to stimulate economic growth and improve overall compliance within the sector, all while encouraging greater participation from local enterprises in Jordan’s economic landscape.
Original Source: jordantimes.com
