Deputies endorse amended renewable energy bill

AMMAN — The Lower House on Tuesday endorsed the 2014 amendments to the renewable energy law, stipulating a zero tax rate on green energy items, the Jordan News Agency, Petra, reported.

The law aims at regulating the renewable energy industry in the Kingdom, in terms of tenders for investments and existing projects in the field, Petra said.

In order to encourage local green energy industries, the law exempts renewable energy’s input and output from general tax in terms of equipment and systems used, and products.

The law also facilitates the licensing requirements for renewable energy projects in addition to granting them incentives and approvals in line with the national energy strategy, according to Petra.

Jordan, which imports about 97 per cent of its energy needs, is working on a series of renewable energy projects that will increase the contribution of local energy resources to the energy mix from the current 3 per cent to 40 per cent by 2020.

The House also continued its deliberations over the draft income tax law, with some deputies calling for scrapping Article 6 that imposes a tax on property rentals.

During the session, MP Abdul Karim Dughmi (Mafraq, 1st District) called on the government to collect taxes imposed on Egyptian businessman Naguib Sawiris, according to Petra.

In response, Prime Minister Abdullah Ensour said Sawiris’ case is being examined by international courts upon the businessman’s request, adding that the government cannot do anything until a final verdict is issued.

Ensour dismissed as baseless claims by deputies Yihya Saud (Amman, 2nd District) and Mohammad Qatatsheh (Tafileh, 1st District) that the government “plotted a conspiracy against the House” through the civil retirement law.

According to Petra, the premier said that weakening the Lower House is not in the interest of the country, citing the legislature’s inseparability from Jordan’s political system. 

His Majesty King Abdullah rejected the draft civil retirement law after the two Houses of Parliament endorsed it in a joint session. 

The King said the bill does not address imbalances in the pension system nor does it ensure justice.   

Under the law, deputies and senators granted themselves lifetime pensions equal to those of ministers, setting a seven-year service in Parliament or civil service as an eligibility condition. 

The bill triggered public outcry, with Jordanians expressing resentment over the move and accusing parliamentarians of seeking personal gains.

During an evening session on Tuesday, deputies continued deliberations over the draft income tax law, endorsing an article that exempts income generated from “agricultural activities” within the Kingdom from taxes.

The majority of deputies also rejected a proposal by MP Tamer Bino (Amman, 5th District) to subject the privy purse to the law.

Commenting on the proposal, MP Ali Khalaileh (Zarqa, 2nd District) said the King is not involved in trade and, therefore, the privy purse should not be discussed during deliberations over the income tax bill.

The House endorsed articles exempting professional associations, licensed societies and nonprofit organisations and companies from income tax, in addition to private and public pension or saving funds.

Deputies rejected a proposal by MP Mahmoud Kharabsheh (Balqa, 1st District) to subject nonprofit companies to tax. 

Kharabsheh argued that many of these organisations have “their own agendas” and seek to distort the image of Jordan.

In response, Ensour said some civil society organisations are built on corruption, but many humanitarian organisations are not corrupt.

The government’s duty is to find the corrupt institutions one by one.

The session was then adjourned until Sunday.