The Jordanian parliament has voted against the proposed increase in prices and value-added tax (VAT) on a series of goods to offset the impact of the war in Iraq on the domestic economy.
Jordan’s Prime Minister Faisal Al-Fayez addressed the parliament on Monday, January 19, 2004, announcing that a price hike on basic goods, petrol, gas canisters, cigarettes and alcohol was planned for the spring. He also said that VAT would increase by three points from 13 percent level to 16 percent, while the general tax on a number of products would rise from four to six percent, reported Petra.
Under the prime minister’s plan, the price of petrol and other oil derivatives would increase by an average nine percent. The price of tobacco and alcoholic beverages would rise by six percent.
The war in Iraq resulted in revenue shortfalls and needs for new expenditures by the Jordanian government. Al-Fayez said a sharp drop in exports to Iraq and the end of an oil protocol that significantly reduced the Kingdom’s petrol bill were the major factors behind the proposed price
hike. — (menareport.com)
© 2004 Mena Report (www.menareport.com )