Even if implemented, it would still only apply 10 per cent of Jordanians, whereas everyone pays an exorbitant 16 per cent sales tax. It makes Amman the costliest Arab city and the 28th most expensive in the world, when compared to its residents’ income.
Jordan has passed 70 percent of its IMF commitments and this law, already delayed for a year, would complete the world lender’s demands, Mr Mulki had said.
Finance Minister Omar Malhas told reporters that Jordan stood to lose not only the IMF loan but also other creditor nations like Japan too, as they have conditioned their support on IMF approval.
But professionals such as lawyers, doctors and engineers were most affected by the draft law and it was they who led the protests, later joined by the wider public.
Mr Mulki will be replaced by his education minister, Harvard graduate Omar Razzaz. The new prime minister’s letter of appointment from King Abdullah specifically called for a “just and fair” tax law that does not further burden the middle and lower classes.
Mr Razzaz, his successor, was a minister of education in the outgoing Mulki government and is known to be progressive and liberal in approach.
His father was one of the founders of the Iraqi Baath party but broke ranks with Saddam Hussein and died under home arrest in Baghdad in 1984.
