Jordan: IMF Representative Recommends Income Tax Rate Increase

Analysis

The head of the IMF mission to Jordan, Christina Kostyal has recommended the highest income tax rate be raised from 14 to 25%.

The current income tax rate is the region's lowest and the increase has been suggested as Jordan faces a public finance deficit, which is expected to reach 90% of its GDP this year.

Interim income tax legislation was issued in 2009 but tax revenue is around 15% of GDP and has dropped by the 5% since the legislation was introduced.

Kostyal has also added tax exemptions and relief are currently being reviewed by the government.

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