Jordan: New tax reform faces tough opposition

Much awaited tax reform of Jordan has been met with stiff opposition and is labelled as lacking substance. The reforms came months after the resignation of the Prime Minister Hani al-Mulki.

The reform aims to make sweeping fiscal reforms which have so far only invited public anger by repealing the rule under which every citizen above 18 years of age will have to register oneself with the National Tax Department. It also addresses the woes of farmers and has abolished taxes on agriculture sector in a bid to boost the farmers.

Among other sweeping reforms it also exempts people having an annual income of less than 9000 dinars and families with annual income less than 18000 dinars from filing the income tax returns. Prime Minister Omar al-Razzaz has said that the new measure will help attain the desired fiscal reforms and will become a law only after wide consultation and the compulsory legal steps.

Razzaz was appointed as the Prime Minster by the King of Jordan Abdullah II in June 2018 for restoring law and economic order in the country which was challenged by the people who were angry with tax reforms of former PM Mulki. Razzaz after resuming office soon axed the irking reforms and proposals and had promised a more equitable tax system. The new reform has also been dubbed as not “substantive” by the opposition as it carries no mention of ways in which corruption will be dealt with.

Opposition leader Hussam Abdallat has said that the public has lost faith in the government and is not just angry about an old tax law.

 

 

 

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