Position paper on Legislative Reform of the Income Tax Law

It goes without saying that tax and fee-related legislations are of great importance as they have a direct impact on the socio-economic rights and the overall human rights system.

It is worth noting that the approach used to draft the national legislation related to such rights represent the most important measure, as policies and practices cannot determine levels taxes and fees as agreed at legal schools and enshrined in most national constitutions.

Therefore, taxes represent the oldest source of general budget revenue, since the tax is related to the interchangeable relationship between the state and citizens. It also expresses the citizens’ duty in return for the services they receive and a source of meeting expenses of national institutions that provide public services such as national security, public health, housing, and utilities.

As in the case of other countries, Jordan started taxation since the establishment of the Kingdom, and the Jordanian Constitution emphasized on the general controls and limitations to be adhered by the government upon drafting laws that fall under the principle that any tax shall be imposed under a law.

This is the constitutional guarantee that enables the House of Representatives – the voice of the nationto exercise its monitoring role on the rationale for enacting such legislation and discuss the controls and limitations to be considered for any tax-related law.

In this paper, Karak Castle Center for Consultations and Training presents the overall legislative and constitutional framework as well as the procedural controls that should be followed by the governments upon revising the Income Tax Law.

This paper is the outcome of discussions and seminars held by the center, which represent a conclusion of national dialogue that included local community segments all over the Kingdom such as academia, chambers of commerce and industry, traders, and self-employed.