IMF: Jordan should not increase tax on basic commodities

The International Monetary Fund (IMF) called on the Jordanian government not to increase tax on basic commodities, especially bread.

IMF Director of the Middle East and Central Asia Department, Jihad Azour, told Roya that it is necessary to have economic reforms which follow the progressive tax system, in which the tax rate increases as the taxable amount increases. 

Azour added that the participation should be in accordance with the citizens’ purchasing power, and that the poor should be protected.

“ The procedures should not increase the tax burden on the poor, especially with regard to charges on essential commodities”, he said.

Azour noted that the economic situation in Jordan was directly affected by the refugee crises, adding that he expects a brighter future for the kingdom as the region becomes more stable.

He also pointed out the fact that IMF had supported Jordan financially in the country’s reform programs.

With the Jordanian government often criticised for constantly complying with IMF’s demands, PM Hani al-Mulki denied such accusations, saying that raising the tax on bread was not a direct order for Jordan.