Written by Dr. Marwan Asmar*
The Jordanian government recently decided to exempt inbound tour operators from the 16% General Sales Tax and the decision was met withenthusiasm by tour operators throughout the Kingdom. The issue has beensurrounded by controversy since 2002 when the government re-imposed the salestax on inbound tour operators after previously stating the operators would beexempt.
The Jordan Inbound Tour Operators Association (JITOA), whichrepresents many of the tour operators who bring tourists to the Kingdom saysthe latest exemption will give a much-needed boost to Jordan’s tourismindustry.
Tour operators say they can now put the sales tax issuebehind and concentrate on developing packages to lure more internationaltourists to the Jordan.
The general sales tax issue developed into a major controversy between the governmentand tour operators because tour operators were trying to hold off implementingthe sales tax on their packages and at the same time, accruing...