Jordanian Government Elaborates On Tax Department Consolidation Plans

by Lorys Charalambous, Tax-News.com, Cyprus

22 July 2002

According to recent reports, the Jordanian government is considering consolidating its three tax departments as part of a package of tax reforms backed by the International Monetary Fund (IMF).

The government announced its plans in a Letter of Intent to the IMF last month, revealing that:

'We are considering combining the income tax, general sales tax (GST), and customs departments into an integrated revenue department to improve tax policy formulation and administration. We will work toward this objective during the programme period 2002-2004.'

Elaborating on the government's plans, an unnamed Finance Ministry official told the Jordan Times last week that the IMF's technical assistance to integrate the departments will be requested shortly, but that the government also intends to conduct comprehensive studies for itself.

The official went on to stress the potential benefits of combining the three tax offices, the principal of which being greater efficiency with regard to tax collection, and a subsequent reduction in tax evasion activities.

A new programme initiated with the International Monetary Fund this month focuses on structural reforms of Jordan's economy, with the emphasis on containing spending pressures, broadening the country's tax base, and strengthening tax administration and the financial system.

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