AMMAN, Nov 19, 2018 (BSS/AFP) – Jordanian lawmakers on Sunday approved an
IMF-backed income tax bill after amendments to a controversial draft of the
proposed law that sparked a week of angry protests in summer.
Thousands of Jordanians hit the streets in June to rally against
austerity, rising prices and corruption, forcing the prime minister’s
resignation and the withdrawal of the bill.
The proposed law on income tax was the latest in a series of policies
adopted to cut national debt after Amman secured a $723-million loan from the
International Monetary Fund in 2016.
Austerity measures tied to the loan have seen the cost of basic
necessities rise across the kingdom.
The original bill, which the government approved in June, raised taxes on
employees by at least five percent, and on companies by between 20 and 40
percent.
These measures were left unchanged in the amended version approved on
Sunday, according to state media.
But the revised bill raises the threshold for households to pay income tax
to 20,000 Jordanian dinars (28,000 dollars) from a previous ceiling of 18,000
for 2019.
The amended legislation also introduced exemptions of up to 2,000 dinars
per family for basic expenses such as education and health, and 1,000 dinars
per single person “applicable upon the delivery of receipts and invoices,”
state news agency Petra said.
The new bill was approved by the lower house of parliament and must be
also approved by the Senate before being ratified by the king in order to
become law.
With a lack of natural resources to boost state coffers, Jordan relies
heavily on foreign aid and faces an unemployment rate of 18.5 percent.
Stability in Jordan is seen as fundamental to the region and in the wake
of protests Amman was offered a $2.5 billion aid package from three Gulf
backers.
More than $1 billion has already been deposited in the central bank by
Saudi Arabia, the United Arab Emirates and Kuwait, a Jordanian government
source said in October.