The last week of August has been a staring one
Consolidation of tax on banks and the commercial sector by 20%
Broad government amendment and leave a margin for deputies to make tax modifications
The government has placed a wager on the downfall of the package of economic reforms and sales tax
A chaotic week awaits the Jordanian society as everyone returns to their offices this morning. Leaked news from the salons that were busy in Eid reveals that all the tax law has been finalized and it has made its way to the parliament which in turn awaits the issuance of the High Royal Decree by an extraordinary session to discuss the aforementioned law. According to leaks from meetings held by Deputy Prime Minister Rajai Al-Muasher, the law has undergone a wide process of embezzlement. The leaks predict that the tax limits on major sectors such as banks, commercial and industrial sectors will be limited to 20%. The law will not discriminate between the major sectors and the tax rate will be consolidated in a move that may be controversial or it is a safe area for the Parliament to have a detailed analysis between the sectors that need more support than others, such as the industrial sector, which is concerned with the leaks issued by the councils of Muasher. He hard a hard time in getting the approval that allows him to use alternative energy to reduce the energy bill on the industry and its sector. An industrial source says: “What the government gave us in energy took it in the tax.”
In turn, President Omar al-Razzaz doesn’t hide how worried he is about the real worth of the budget of the country, which suffered a decline in revenues due to disappointment expectations of the initial preparation, the amounts expected to be collected were fictitious. The decisions issued by the previous government were not studied and did not achieve the expected budget. Therefore the government of Al-Razzaz is expected to have a full understanding of the commercial, industrial, agricultural and service sectors for his upcoming decisions, especially as they come within the package of financial and economic reforms. The sales tax is expected to be significantly lower on key sectors affecting simple citizens and sectors experiencing confusion and conflict of taxes and fees
The conspicuous statements and leaks revealed that the government is coming to decisions that are not liked in major sectors, especially the huge professional unions, one of whose staff collided early with the deputy prime minister during a special meeting in clan marshals after Muasher broke his promise of returning to the Negev Council for amendments on the law of the tax. According to the source, Muasher said: “The government will submit the law to the Parliament, which is return is concerned to conduct a dialogue on it. In regards to the topic of the government and the Deputy Prime Minister, it has ended after holding nearly twenty meetings with various forms of economic and political dialogues, which in return angered the trade union and promised Muasher with a fierce confrontation.”
The law of the tax is not the only one dominator on the salons of Eid. The king's talk with the writers and publishers was present, and specifically the government's description of the slow, confident or balanced had a deconstruction presence. The political spectrum felt that the current team had become a heavy burden on the president, which he won’t be able to carry around so it is required to alter the ministerial team more like to reconstruct it whether by getting follow the legacy of the previous government.
Al-Razzaz does not conceal his concern, but he is armed with the confidence of the people in person. Secondly, he believes that the economic reform package will find many supporters by distributing fair loads to the commercial sectors, although the levy tax rate will have a sweeping attack on Al-Muasher, which is seen by the popular street as a representative of the banking sector in government and tax, However, reducing the tax on banks according to Muasher and economists will be reflected positively on the economic sectors as a whole if the central bank intervenes in favor of reducing the commission and reducing interest according to tax reduction.
A crucial week and a long debate that will be experienced by the Jordanian community, which is preparing for huge spending by virtue of returning to schools and universities after the holiday of Eid consumed a lot of its meat and not financial stock.
Translated by : Diana Hilal