Law issued to amend General Tax Law

SANAA, May 3 (YPA) – The Law No. (7) of 2020 was issued on Sunday, amending the General Sales Tax Law No. 19 of 2001 and its amendments.

The amendment of the law included (5) articles that included exempting the following goods from the general tax on sales imposed under the law, namely:

Wheat and wheat flour, rice, medicines, raw gold, personal belongings of travelers coming from abroad, paper and metal money in circulation, and the production inputs of pharmaceutical manufacturing and medical supplies (the main and auxiliary raw materials and packaging materials) for pharmaceutical factories and medical supplies factories.
Cars operating wholly or partly by solar or electric power and in accordance with the customs tariff items, agricultural equipment powered by renewable energy and according to the customs tariff items, renewable energy systems and devices (solar panels – wind-generated power fans – solar heaters – energy storage batteries – electrostatic alternators)- charging regulators – pre-paid and smart energy counters for renewable energy networks), the production inputs of renewable energy generation means (the main and auxiliary raw materials and packaging materials for renewable energy generation means), Capital goods (machines and equipment) needed for projects to construct renewable energy production and generation plants for projects, locally manufactured medical supplies, Solar street lighting system.

And exempting manufacturers of locally produced medicines from the sales tax amounts due from sales receipts on the production of locally manufactured medicines, for the tax periods prior to the date of the implementation of this law.

The last article stipulated that this law should be enforced from the date of its issuance, and to be published in the Official Gazette.

YPA