AMMAN, Sept. 11 (Xinhua) -- Jordan announces new income tax law that seeks to generate around 280 million dinars (395 million U.S. dollars) in additional revenues in 2019.
In a meeting with the media on Tuesday, Jordanian Prime Minister Omar Razzaz said the law seeks to increase economic growth, ensure social solidarity and combat tax evasion.
He said the law will be offered for feedback from the public before being referred to the Lower House, adding that no pressure has been faced from any entity when drafting the law.
The current draft law exempts families whose yearly income does not exceed 18,000 dinars, as well as individuals whose yearly income does not exceed 9,000 dinars.
In addition, 90 percent of the military retirees, civil servants and Social Security Corporation (SSC) subscribers will not be affected by the bill.
"It is not easy to sell the law to the public in light of the current difficult economic conditions and we stresses that it is tailored towards the well to do companies and individuals," said Razzaz.
Jordan needs to achieve the desired fiscal reforms in 2019 so the interest rate will not increase amidst high public debt, he said, adding that income tax was increased on some sectors, including the telecom sector.
The government of Prime Minister Omar Razzaz was appointed after nationwide protests against the previous income tax draft law which resulted in the resignation of former prime minister Hani Mulki.
The bill is part of reforms under a deal signed between Jordan and the International Monetary Fund.
