Jordan’s government will cut spending by 150mn Jordanian dinars ($212mn) this year, new Prime Minister Omar al-Razzaz said yesterday, in a bid to reassure the public over his cabinet’s tax plans.
“This is an important step towards not depending on taxes as the sole means to cover expenses,” Razzaz told a news conference in Amman.
“As promised we will hold a comprehensive review for the tax system, especially the income taxes,” said the newly-appointed premier.
Razzaz and his 28-member cabinet were sworn in last week, after daily protests against austerity measures forced out former premier Hani al-Mulki.
Anti-government protests began on May 30 across Jordan and continued for eight days, as demonstrators denounced new income tax legislation, the latest in austerity measures adopted by the government in recent years.
Razzaz, a former education minister and World Bank official, withdrew the bill last week.
In recent years, the government has launched a series of austerity measures.
Jordan has been trying to revive its economy, which has been hit by neighbouring conflicts and an influx of refugees, pushing the unemployment rate to more than 18% and a public debt to around 95% of the gross domestic product.


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