Jordan- Gov't stops ads in non-taxpaying websites

(MENAFN - Jordan Times) Prime Minister Nader Dahabi on Wednesday issued a circular to all government institutions not to post advertisements in any media outlet that is not registered with the Income and Sales Tax Department.

The measure drew fire with critics accusing the government of placing pressure on news sites that are critical of the executive authority and its agencies and policies.

Officials said the decision, which is expected to affect around 56 online news websites operating in the Kingdom, is aimed to reduce public expenses in light of the budget deficit, which is expected to top JD1 billion by the end of the current year, a senior government official said yesterday.

"The decision does not target any particular institution," Minister of State for Media Affairs and Communications and Government Spokesperson Nabil Sharif told The Jordan Times yesterday.

He added that the government is taking several measures to end the depletion of state financial resources, citing recent decisions to suspend recruitment at public institutions and cut down on travel expenses disbursed to government officials, stressing that Dahabi's decision comes within this context.

Although the law does not oblige news websites to register at the Income and Sales Tax Department, Sharif expressed hope "the circular will encourage them to optionally register if they want to continue making revenues from government ads".

There was no exact figure available on how much state agencies spend on advertising on electronic newspapers, whose numbers have mushroomed in the past few years due to the absence of regulations that govern this type of media vis-�-vis traditional outlets.

"This is not a punitive measure as some might say. However, it is not fair to deal on an equal footing with those who pay taxes and those who do not," the minister said.

Co-owner and editor of Khaberni news website Mohammad Hawamdeh, who said his outlet is fully in compliance with its tax obligations, stressed that the decision might be interpreted as the government putting pressure on online news websites that do not abide by the journalistic code of ethics.

"Some news websites exploit advertisers through the dissemination of inaccurate news, and widely open the chance for their audiences to interact and post unfiltered comments," Hawamdeh said.

By Hani Hazaimeh