Jordan’s upper house, the Senate, passed an income tax bill on Nov. 26, a day after the House of Representatives rejected amendments it proposed. Instead of holding a joint session of both chambers, the senators opted to approve the draft law as it was passed by the lower house, which had lowered tax rates on a number of commercial and industrial sectors. On Nov. 21, the Senate voted to revert to tax rates originally suggested, stirring negative reactions from some legislators, the media and various business sectors in the kingdom.
The government of Prime Minister Omar Razzaz has crossed a major hurdle by passing new income tax legislation, the issue that brought down its predecessor last June. In contrast to the popular protests that forced the resignation of Hani al-Mulki’s government, the Jordanian street has been eerily quiet this time. But the general mood remains both critical of the proposed law and skeptical of the government’s promises that it will not target the middle and low-income classes.
While the kingdom’s influential Professional Unions Association that led this summer’s strikes and protests remained silent as the House debated the income tax bill earlier this month, the Jordan Times reported Nov. 25 that the syndicates once again opposed the controversial bill, saying that “escalatory yet democratic measures” may be taken to push for its cancelation. On the same day, a small number of union members held a protest in front of the Professional Unions compound.
Passing the law, which is intended to prevent tax evasion and widen the tax base, is part of an economic reform plan that the government is undertaking in an agreement with the International Monetary Fund. The adoption of the law will allow the government to receive additional loans from the IMF and other creditors to deal with its budget deficit as it continues to restructure the economy.
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