Jordan’s leadership moves to defuse anger over income tax increases
King and senate seek route to consensus that will satisfy public’s deepening concerns
Jordan’s senate yesterday attempted to defuse widespread anger over proposed income tax increases that have triggered daily nationwide protests.
The senate sent two recommendations to King Abdullah, who on Friday ordered a freeze on price increases that had also outraged citizens.
The first proposal was to ask the government to withdraw the bill on amended income tax rates and set up a committee to oversee a national dialogue, the Alghad newspaper reported.
The other is that the king issue a decree to convene an extraordinary session of parliament in the next few days to discuss the amended income tax bill.
It seeks to lower the threshold for liability to income tax, thereby expanding the number of taxpayers, as part of the government’s programme of economic reforms to qualify Jordan for further assistance from the International Monetary Fund.
The amended draft bill comes after a round of austerity measures adopted by the government earlier this year that almost doubled the prices of bread, fuel and increased sales taxes on hundreds of everyday goods.
King Abdullah chaired a meeting of the National Policies Council on Saturday night and sought to reassure Jordanians that he empathised with their situation.
The king said it was unfair for citizens alone to shoulder the burden of financial reform, stressing that shortcomings in providing vital services such as education, health care and transport would not be tolerated, the Petra state news agency reported.
He urged the government and parliament to lead a comprehensive, rational, national dialogue to reach a consensus on the draft income tax law that does not burden the public, combats evasion and improves efficiency of tax collection. “I know how much Jordanians have endured ... we are working day and night to overcome this difficult situation,” he said.
The king stressed that the challenges facing the economy were a result of the difficult regional conditions.
“The problem does not lie in Jordan. Jordanians are ready to sacrifice for their country, and with their strong resolve, we will persevere and overcome these challenges, as we have surmounted others before.”
Jordanians staged another protest near Prime Minister Hani Mulki’s office into the early hours yesterday to demand that his government step down. They were kept from reaching the office by gendarmes.
“We want a national government, and not a group of thieves,” the crowds chanted. “Raise your voice ... we will not be quiet even if we are in a coffin.”
Demonstrations so far have largely been peaceful.
In one Amman neighbourhood, protesters directed their anger at King Abdullah despite laws against criticising the head of state. Gendarme forces fired tear gas to disperse the crowd, according to reports on social media.
“These are social protests and if the government does not respond, it will lead to an explosion,” said Ahmed Awad, director of the Phenix Centre for Economic and Informatics Studies in Amman.
So far, the government has not shown any signs of backing down on the income tax bill. After a meeting on Saturday with Jordanian professional associations, both sides agreed to form a committee to discuss an amended income tax bill. Mr Mulki told a press conference: “Referring the draft income tax law to parliament does not mean the bill ... will be approved. The [lower] house has many measures to address any draft laws it receives.
“We have completed 70 per cent of the [IMF] programme and, in case, we endorse the law in a modern manner that will protect the poor and middle income classes, we will finalise the programme by the middle of 2019 and reach a safe haven.”
But most Jordanians remain unconvinced that the government is working for their interests. Despite the promise to hold further talks with government, the professional associations called for another mass strike on Wednesday.
Trades unions said the tax bill will worsen a decline in living standards.
Earlier this year, a general sales tax was raised and a subsidy on bread was scrapped as part of the three-year plan that aims to cut the Arab nation’s $37 billion (Dh135.8bn) debt – equivalent to 95 per cent of gross domestic product.
Critics said such measures hurt the poor and accused politicians of corruption.
These are social protests and if the government does not respond, it will lead to an explosion AHMED AWAD Director, the Phenix Centre for Economic and Informatics Studies