Jordan govt’s decision to raise tax criticized by telcos

www.WirelessFederation.com/news: Government’s plan to increase taxes on mobile phone services has been severely criticized by the wireless network operators in Jordan. Currently, the tax paid by the telecom industry is equivalent to 58% of its revenue to the government. The latest tax is an increase in the special cellular phone tax from 4% to 8%.

16% in sales taxes, 24% income tax on profits and 10% on their total revenues is paid by the operators in total along with a newly raised special phone tax of 8%. According to Raslan Diranieh, chief financial officer of the Jordan Telecom Group, the increase in the tax will certainly have a negative impact on the telecom sector and whenever the government wants to increase tax, it thinks of the telecom sector because it is faster and easier to collect the tax, and there are zero efforts involved in the process.

Rival Zain also considers the government’s decision to be shocking and negative. The government on the other hand explains that in light of the current difficult economic situations it is best for all to direct their spending towards essential items rather than luxury items.