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2007 Assessment

Jordan: Integrity Indicators Scorecard

Jordan: Integrity Scorecard Report > Sub-Category: Taxes and Customs
Indicators		Score
58	In law, is there a national tax collection agency?	0
59	Is the tax collection agency effective?	88
60	In practice, are tax laws enforced uniformly and without discrimination?	25
61	In law, is there a national customs and excise agency?	100
62	Is the customs and excise agency effective?	75
63	In practice, are customs and excise laws enforced uniformly and without discrimination?	100

Indicator and sub-Indicator Details

In law, is there a national tax collection agency?

58: In law, is there a national tax collection agency?

Score:

YES

Comments: Jordanian citizens have a burden of more than 200 taxes collected through different agencies.

References: The two main tax collection agencies: The Income Tax Department follows Income Tax Law #14 of 1995 www.incometax.gov.jo The General Sales Tax Department follows Sales Tax Law #36 of 2000 www.vat.gov.jo

Phone Interview with Mr Fadi Otaqui, project coordinator, Young Entrepreneurs Association, 29 November 2007

Peer Review Comments: There are more than one entities governing taxes pursuant to their specific laws. Two tax-collecting agencies merged two years ago.

Is the tax collection agency effective?

59a: In practice, the tax collection agency has a professional, full-time staff.

Score:

100

Comments: The issue of staff is not one of insufficient numbers, rather it is an issue of efficiency, capacity, and accountability.

References: Phone Interview with Mr Fadi Otaqui, project coordinator, Young Entrepreneurs Association, 29 November 2007

59b: In practice, the tax agency receives regular funding.

Score:

100

Comments: The Income and Sales Tax Department receives regular funding from the public budget, which is approved by Parliament. There is also a specific item for the Tax Department.

References: Phone Interview with Mr Fadi Otaqui, project coordinator, Young Entrepreneurs Association, 29 November 2007

In practice, are tax laws enforced uniformly and without discrimination?

60: In practice, are tax laws enforced uniformly and without discrimination?

Score:

100

Comments: Discrepancies are created in the incentive system. With regard to income tax, most individual tax payers are found in the lower-income strata of professionals. With regard to corporate tax, the the largest companies comprise the largest group of tax payers. There is a high degree of income tax evasion. Most taxes are collected through VAT.

References: Phone Interview with Mr Fadi Otaqui, project coordinator, Young Entrepreneurs Association, 29 November 2007

Peer Review Comments: This is the hot topic that NGOs and financial experts are discussing, especially nowadays that living costs and prices are high and incomes low. Overall, citizens are burdened by the unfair enforcement of tax laws.

In law, is there a national customs and excise agency?

61: In law, is there a national customs and excise agency?

Score:

YES

Comments: The first law that organized the responsibility of customs was issued in 1926 and was called the Customs and Duties Law. This law was amended many times to cope with continuous national, regional, and international developments. The last amendment on this law was approved in August 1998 by the Parliament and was officially implemented at the beginning of 1999.

References: The Customs Department, Customs and Duties Law #20 of 1998 [ LINK ]

Is the customs and excise agency effective?

62a: In practice, the customs and excise agency has a professional, full-time staff.

Score:

100

Comments:

References: Phone Interview with Mr Fadi Otaqui, project coordinator, Young Entrepreneurs Association, 29 November 2007

Peer Review Comments: It is an official department with a full-time staff.

62b: In practice, the customs and excise agency receives regular funding.

Score:

100

Comments:

References: Phone Interview with Mr Fadi Otaqui, project coordinator, Young Entrepreneurs Association, 29 November 2007

Peer Review Comments: The agency has a predictable source of funding that is fairly consistent from year to year.

In practice, are customs and excise laws enforced uniformly and without discrimination?

63: In practice, are customs and excise laws enforced uniformly and without discrimination?

Score:

100

Comments:

References: Interview with Dr. Ibrahim Aljazy, a professor of human rights at the University of Jordan, 12 September 2007