AMMAN —
Government’s revenues are expected to
decline by about JD100 million, following its decision to maintain current fuel
derivative prices even as international oil prices have risen in the past few
weeks, energy expert Hashem Aqel told
Jordan News.
اضافة اعلان
He said that the government had borne the difference
in the rise in global oil prices between last November and until next March.
Aqel pointed out that maintaining fuel derivative
prices at current levels has helped citizens especially in winter months,
adding that following the steep rise in international oil prices and increasing
fuel prices locally would have been deleterious.
He said that the amount of money that Jordanians may
have saved from their energy bill in the past months would probably be spent on
other purchases that are subject to sales taxes, meaning that the government
would still get the difference through sales tax revenues.
Aqel said that the government’s decision to keep
fuel prices unchanged may be an opportunity to review the entire structure of
imposing taxes on oil derivatives in Jordan, a controversial issue for a
majority of Jordanians.
Economist and energy specialist
Amer Showbaki said
that there is no decline in government revenues because the volume of sale of
oil derivatives has increased, and therefore tax revenues are increasing. He
said government revenues will increase as the economy picks up after the
opening of all sectors and the discontinuation of closures that occurred due to
the pandemic.
Energy and petroleum expert Mubarak Al-Tahrawi said
that government revenues will not be affected by the increase or decrease in
global oil prices, but rather by the amount of consumption in the
Jordanian market, adding that taxes on oil derivatives are not affected by prices because
they are fixed.
Tahrawi also predicted that after the return to
in-person education and after the first of March, due to the lifting of
restrictions on economic activities, the Ministry of Finance’s revenues from
taxes on oil derivatives will increase.
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