Cabinet Ratifies International Agreements, Freezes Customs Duty Reduction

AMMAN: The Cabinet, led by Prime Minister Jafar Hassan, has sanctioned a series of pivotal decisions, including ratifying international agreements, implementing a new system for military-insured persons under the 2024 Social Security Law, and suspending a previously planned reduction in customs duties on specific goods. According to Jordan News Agency, the Cabinet endorsed a technical cooperation agreement with Germany for the year 2024. This agreement is focused on advancing vocational and technical training for women, fostering job creation in the private sector, enhancing financial inclusion for small enterprises, and upgrading water management infrastructure. Additionally, an agreement with Kenya was approved to eliminate double taxation on income, which aims to strengthen economic ties and prevent tax evasion between the two nations. The Cabinet's economic measures include a decision to delay the reduction of customs duties for items in the 25 percent fee category, encompassing food products, engineeri ng and construction materials, and furniture. The reduction, originally set to commence in 2025, will now be postponed, while the reduced rates introduced before 2022 will remain effective. This decision, informed by an economic impact study conducted by the Central Bank, intends to bolster Jordan's industrial sector, enhance competitiveness, and safeguard financial resilience amidst pressures on the public treasury. A significant development is the introduction of a system of rights and benefits for military-insured persons under the 2024 Social Security Law. This system seeks to standardize the rights and benefits for military personnel insured under the Social Security Law with those under the Military Retirement Law, particularly in healthcare and education. The initiative ensures uniform entitlements for all members of the Jordan Armed Forces-Arab Army and security services, aligning their benefits across different legal frameworks. The Cabinet also implemented several administrative and economic measu res, including a strategic plan to elevate Jordan's position in the Global Innovation Index as part of the Economic Modernization Vision 2023-2025. Furthermore, it approved the resolution of tax disputes for 38 companies and taxpayers to enhance tax compliance and support the national budget.