On Tuesday, representatives of the agriculture industry applauded the decision by the Jordanian government to exempt agricultural production inputs from the general sales tax, but said that several measures are still required to resuscitate the ailing sector.

The government’s decision is a positive step in the direction of supporting the sector and responding to its complaints. The previous government in January announced a 10 percent tax on some agricultural inputs and outputs. The decision drew strong opposition from all segments of the agriculture sector, which managed to pressure the government into annulling the tax on agricultural production outputs. However, it failed to have the 10 percent tax on agricultural production inputs cancelled, while farmers argue that the exemption of outputs means nothing on the ground, because agricultural inputs constitute 82-92 percent of farmers’ expenditures.

The Cabinet’s decision is meant to support the agricultural sector as it struggles with challenges ensuing from regional turmoil and border closures which led to a significant decline in agricultural exports, and a dro in the prices of fruit, vegetables and poultry, the Jordan News Agency reported.

Jordan Farmers unio Director General Mahmoud Oran said that the unio, which represents more than 72,000 farmers across the Kingdom, hails the decision: “We hail and welcome every positive decision that the government takes in support of the agriculture sector, but we need several other measures to strengthen the sector and support farmers.”

Jordan’s agriculture industry has been very much disrupted since the Syrian crisis started in 2011, when the country lost its main portal to the European markets.

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