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The House of Representatives discusses the draft law regulating the investment environment

Amman Today

publish date 2022-08-17 08:31:54

The House of Representatives will hold a legislative session, today, Wednesday, to discuss the draft law regulating the investment environment for the year 2022, after the Economy and Investment Committee introduced a number of amendments to its articles.

The committee approved the draft law and recommended increasing the pace of work to automate government institutions and departments and electronic connectivity, in addition to directing the establishment of a qualified industrial city in Zarqa.

The committee also recommended expediting the filling of vacancies for the director of the Partnership Unit and the Director of the Governmental Shareholding Company, and removing distortions and inconsistencies in the work of the Jordan Enterprise for the Development of Economic Projects and the Export House Company.

In its recommendations, the committee called for deciding on the file of public shareholding companies that were referred to the Integrity and Anti-Corruption Commission and quickly returning them to work.

The most prominent amendments introduced by the committee are to increase clarity in investment incentives, so that the draft law included several clear criteria, including; Employing no less than (350) Jordanians, and female Jordanian workers with no less than 50% of the total workforce, provided that the number is not less than (50) female Jordanian workers, and economic activities targeting export markets by at least 50% and local value-added activities. At a rate of no less than 50%, and activities aimed at transferring knowledge and technology, digital transformation, strategic economic activities, and activities included in public-private partnership projects.

The committee added the Minister of Digital Economy and Entrepreneurship, representatives from the sectors of agriculture, tourism, financial services, and a businesswoman to be among the formation of the Investment Council.

The Committee introduced a text according to which the registration of investment funds will be established under a system issued for this purpose, while it introduced a text prohibiting the official entity from requesting the investor to submit any valid document issued by another official authority in the event that an electronic link is available between these two entities.

According to the provisions of the draft law, the Minister of Industry, Trade and Supply was granted the right to delegate his powers to hold exhibitions and open markets, provided that this authorization is in writing and specific.

The committee reduced the conditions of protection from amending and changing the legislative and regulatory provisions to bring the number of workers to 250 Jordanians or more, while raising the exemption period for less developed regions to 5 years from the date of actual employment instead of 3 years.

The committee also limited the employment of non-Jordanians in specialized administrative and technical jobs to no more than 30%.

And it approved the fourth chapter related to development zones and free zones and the fifth chapter related to “registration and licensing of economic activities” and the final provisions.

The committee also approved Article Nine, after deleting the phrase “in the areas it defines” at the end of Clause 1 of Paragraph (B), which states: “The Council of Ministers, upon the recommendation of the Incentives and Exemptions Committee, issues a schedule that includes fixed assets, production requirements and inputs, and spare parts necessary for practicing the economic activity subject to zero tax in the areas he specifies.

The committee approved Article 10 after making appropriate amendments to it and deleting some phrases, as it raised the exemption period for economic activities to become 5 years from the date of actual operation instead of 3 years, as the article became as follows: “Despite what was stated in the income tax law, the exemption from The due income tax or its reduction by no less than (30%) on economic activities in the less developed regions in the Kingdom or projects that employ at least (250) Jordanians, and for a maximum period of (5) years from the date of actual operation.

The provisions related to this are determined by virtue of a system that includes economic activities that enjoy exemption from income tax and economic activities that enjoy a reduction in income tax and the reduction rates for each of them, the foundations, criteria, conditions and periods for enjoying exemption or reduction from income tax and the identification of the least developed regions in the Kingdom for the purposes of enjoying exemption or reduction from Income tax when carrying out economic activity in it.

The committee also approved the article related to providing the comprehensive investment service for licensing economic activities and completing related transactions. The committee added a progressive text prohibiting the official entity from requesting the investor to submit any valid document issued by another official entity in the event that an electronic link is available between these two entities.

The committee re-drafted the preparation of the draft investment map for the Kingdom, which the Ministry of Investment undertakes the task of carrying out, to become the preparation of the draft investment map for the Kingdom according to the sectors and governorates that identify the available investment opportunities, including partnership projects with the private sector, in coordination and cooperation with the concerned authorities, provided that the update is carried out continuously.

With regard to the article concerned with (the Incentives and Exemptions Committee) formed by the Council of Ministers from among its members, provided that its membership includes the Ministers of Investment, Planning, International Cooperation, Industry, Trade, Supply and Finance, the Committee added a text prohibiting any member of the Incentives and Exemptions Committee from participating in any decision-making. It relates to an economic activity, an investment fund or a joint investment fund in which he and his spouses, branches or relatives up to the second degree obtain direct or indirect benefit, and each of them must disclose any benefits that may accrue to any of them under penalty of legal liability.

It also approved the article that allows the Council of Ministers, upon the recommendation of the Incentives and Exemptions Committee, to adopt any incentives, advantages or exemptions for economic activities in any region of the Kingdom, including exemptions and incentives related to the price of the sale or rent allowance for lands owned by the public treasury for the purposes of establishing economic activities and supporting costs Energy and water, supporting renewable energy projects, and allowing investors to deduct the costs of establishing infrastructure services that they have connected to the economic activity from the receivables due in case the project is operated within a certain period of time, and granting exemptions or tax or customs reductions in return for employing a minimum number of Jordanian workers.

On the other hand, the Parliamentary Committee on Labor, Social Development and Population is discussing the government’s tendency to abolish the Ministry of Labor and transfer its powers to ministries within the public sector modernization plan.

The Parliamentary Health and Environment Committee is discussing the Jordanian Medical Council draft law for the year 2022.

The kingdom

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Jordan News

Source : اخبار الاردن

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