The Minister of Finance, Dr. Mohammad Abu Hammour said that the decision to amend the price of electricity rates is not enough to pay for the losses resulting from the halt of the flow of Egyptian gas, due to the three explosions to the pipeline supplier Jordan suffered since the beginning of the year.
Abu Hammour said in a statement to AmmanNet that interruption in gas causes financial losses to electricity companies exceeding one billion dinars. In turn, it is estimated that companies must pay reimburse the petroleum refinery after it has generated electricity for heavy fuel oil and diesel.
He pointed out that the explosions caused reduced amounts of natural gas which reaches Jordan under an agreement with the Egyptians. The quantity flowing to Jordan hit 20 percent of what was agreed upon.
In an effort to resolve the financial crisis, Abu Hammour revealed that the electricity company will seek to borrow from the salt market, based on inflow and financial guarantees from the government in order to ensure the flow of oil and diesel fuel for electricity production.
The government will be obliged to ensure the company loans to guarantee that there is energy security in the Kingdom, pointing out that the plan developed by the company and government guarantees payment of losses in six years.
In latest news, Abu Hammour said that the agenda of sales tax was modified. According to the study prepared by the Ministry of Finance goods and services are subject to sales tax, and custom's duties will be determined based on the basic goods and services consumed by those with low to medium income which requires reducing the financial burdens imposed on them.
He clarifies that the amendment of the tables attached to the law of general sales tax would increase the basic and necessary goods to citizens free of sales tax exemption and will cover the following goods:
1. fresh dates
2. Green beans and kidney beans
3. Fava beans
11. Sausages (all types)
12. Various prepared categories of meat
13. Prepared fowls of the species gallus domesticus
The amendment also includes a reduction of sales tax on a host of other commodities and 16 percent to 4 percent of the value of commodities include the following:
2. Burghol (cracked wheat)
3. Dried dates
4. Amar Al-Deen (apricot)
5. Peanuts (not roasted or cooked)
Abu Hammour pointed out that the study of basic goods and services provided by the Ministry of Finance is part of the government's actions to improve living standarda among citizens and alleviate the financial burden on low and middle income classes.