Get all your news in one place.
100's of premium titles.
One app.
Start reading
Asharq Al-Awsat
Asharq Al-Awsat
World
Asharq Al-Awsat

Jordan King Calls for Review of Controversial Draft Tax Law

Demonstrators clash with riot police during a protest in Amman, Jordan, June 2, 2018. (Reuters)

Jordan’s King Abdullah II called on Tuesday for a review of the controversial draft tax law that has sparked days of anti-austerity protests in the kingdom.

The demonstrations forced on Monday the resignation of Premier Hani Mulki. He was replaced on Tuesday by Omar al-Razzaz.

In a letter charging Razzaz with forming a government, King Abdullah II said it "must carry out a comprehensive review of the tax system" to avoid "unjust taxes that do not achieve justice and balance between the incomes of the poor and the rich".

He also expressed empathy for ordinary Jordanians who have long complained that they are being asked to pay taxes for poor services.

For nearly a week the capital and other cities have been hit by angry demonstrations against reforms backed by the International Monetary Fund that have brought repeated price hikes.

Late Monday the king had warned the country was "at a crossroads", blaming the country's economic woes on regional instability, the burden of hosting hundreds of thousands of Syrian refugees and a lack of international support.

Last month, the government proposed a new income tax law, yet to be approved by parliament, aimed at raising taxes on employees by at least five percent and on companies by between 20 and 40 percent.

It was the latest in a series of austerity measures since Amman secured a $723-million loan from the IMF in 2016.

Razzaz holds a doctorate in planning and a post-graduate degree in law from Harvard. He taught at the Massachusetts Institute of Technology from 2002 to 2006. From 2006-2010, he served as the World Bank's country manager in Lebanon, with emphasis on private sector development and infrastructure finance.

Razzaz then returned to Jordan to head the Social Security Corporation, and from 2011-2012, led the national team responsible for preparing a national employment strategy.

Sign up to read this article
Read news from 100's of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.