CEOs lambast Jordan's telecom taxes

High taxes are stifling investment in Jordan, CEO claims

Tags: JordanOrange JordanUmniah Mobile Company
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CEOs lambast Jordan's telecom taxes Ihab Hinnawi, CEO of Umniah, joined the CEOs of Orange Jordan and Zain Jordan to criticise taxes on the ICT sector in Jordan.
By  Roger Field Published  June 4, 2013

The CEOs of Jordan's three mobile operators lambasted the country's taxation of the telecoms sector during the first keynote panel discussion at the Arab Advisors' Convergence Summit in Jordan.

As the discussion focused on tax issues, Jean-François Thomas, CEO of Orange Jordan, quipped: "I have two jobs: telecom operator and tax collector."

He added that the industry expected the government to take a more long-term approach to taxation of the ICT sector. "As we do long-term investments in our networks we expect the government to have long-term vision in its taxation policy."

Ihab Hinnawi, CEO of Umniah also aired his frustration, arguing that tax had become a burden that was hindering investment in the country: "Over taxation is blocking investors to further invest into Jordan," he said.

Ahmad Al Hanandeh, CEO of Zain Jordan, added that his company's profit was "50% of what the tax collector" makes.

Jordan emerged as the country with the second most heavily taxed mobile sector in the Arab world in a recent survey conducted by Arab Advisors. Jordan was beaten to the inauspicious number-one spot by Sudan.

The report, which was released in the fourth quarter of 2012, analysed the cellular tariffs for 48 cellular operators in 19 Arab countries.

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