Jordan: Telecoms Tax Doubled

Analysis

Jordan's Cabinet has issued a Decision doubling the tax on the country's telecommunications industry with immediate effect.

Mobile phone subscriptions have doubled from 12% to 24% and mobile devices tax has been doubled from 8% to 16%. The taxes also apply to multi-purpose smart phones.

A Zain Jordan representative said the move would not necessarily raise revenue for the government and could instead lead to reduced revenues as consumers stopped using mobile services.

The relevant Cabinet Decision has been published in the Official Gazette. A separate draft law is currently under consideration and if approved would raise income tax on the sector from 24% to 40% and has been fiercely opposed by the relevant stakeholders.

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