Fahed Dib's Chinese shoe business in Amman has been doing relatively well despite the coronavirus.
In the peak morning and late afternoon hours, thousands pass by his stall at the entrance to one of Amman’s largest low-income markets, in the grounds of the city’s main bus station.
But Mr Dib, a blond, green-eyed Syrian from Homs, is forecasting a fall in sales after the authorities announced the reimposition of a Friday curfew, starting this week.
“Friday is our main sales day. We will struggle again to pay rent,” he said.
He said that although he sometimes does good business during weekdays, his customers have the most time to visit and try on shoes on a Friday, the day of the week most people have off.
Businesses were hoping that pent-up demand would revive sales after the government, acting on instructions from King Abdullah, lifted most coronavirus restrictions in mid-January.
The reimposition of curfew measures was prompted by a sharp increase in Covid-19 cases caused by a more infectious coronavirus variant over the past three weeks, the government said on Wednesday.
Besides banning all movement on Fridays, a daily lockdown until 6am was also extended by two hours, beginning at 10pm instead of midnight.
Jordan's economy is in recession and the official unemployment rate is at record high of 23.9 per cent. The government increased support this year for the National Assistance Fund, which gives cash handouts to impoverished Jordanian families, by 38 per cent to $280 million.
During lockdown last year, Mr Dib dismissed his Syrian helper. He now runs the shop on his own and pays $75 rent a day to one of several Jordanian families who sublet much of the space in the vast Raghadan market.
Stallholders in the market sell everything from fresh harisseh, a sweet made of semolina and sugar, to cheap household goods.
Other vendors were frustrated by the return of the curfew cycle.
Egyptian falafel makers Ahmad Tumeh and Khaled Tala said their Jordanian employer had already informed them that he would stop paying their daily wage on Fridays.
“We lost a work day,” said Mr Tumeh, who has been in Jordan for more than a decade.
"Since Covid the market became bad for everyone," he said.
Like most workers at the market, regardless of nationality, Mr Tumeh and his compatriot have no protection and are treated as daily labourers.
Coffee stall operator Arafat Hammoud, a Jordanian, said the Friday curfew would aggravate the drop in business since the coronavirus pandemic began.
Mr Hammoud employs another Jordanian and charges 75 cents for a large cup of premium brand Turkish coffee, but also offers cheaper cups made from lower-end brands.
He said his regular customers have been asking to pay for their coffee at the end of the month, when they receive their salary.
“Others are trying to save by not drinking coffee,” he said.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Essentials
The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.