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JORDAN-ECONOMY-DEMONSTRATION
Jordan king calls for review of bill that sparked protests
AMMAN, June 6, 2018 (BSS/AFP) – Jordan’s King Abdullah II called for a
review of a controversial draft tax law Tuesday as anti-austerity protesters
staged another night of demonstrations in Amman and trade unions vowed to
hold a general strike.
For nearly a week, the capital and other cities have been hit by angry
rallies against reforms backed by the International Monetary Fund that have
brought repeated price hikes.
Prime Minister Hani Mulki stepped down on Monday in an effort to quell the
unrest but his departure — and King Abdullah’s call to review the law —
appear to have done little to reduce public anger.
On Tuesday evening, protesters held another mass rally in Amman after
breaking their Ramadan fast, jostling with police and waving Jordanian flags.
Trade unions said the law review was a “positive” step but nonetheless called
for a general strike on Wednesday.
At a rally Monday night, many demonstrators said they wanted more than
Mulki’s departure.
“We are demanding a change to the government’s economic programme, not
just a change in prime minister,” said 23-year-old university student Ahmad
Abu Ghazzal.
“We’re sick of seeing changes in the cabinet — it’s not good enough and
it doesn’t have any results.”
In a letter charging new premier Omar al-Razzaz with forming a government,
King Abdullah II said it “must carry out a comprehensive review of the tax
system” to avoid “unjust taxes that do not achieve justice and balance
between the incomes of the poor and the rich”.
Late Monday, the king had warned Jordan was “at a crossroads”, blaming the
economic woes on regional instability, the burden of hosting hundreds of
thousands of Syrian refugees and a lack of international support.
Protesters on Monday night chanted “we want rights and duties, not tips
and handouts!” and “down with the IMF!” as they gathered under a heavy police
presence.
Last month, the government proposed a new income tax law, yet to be
approved by parliament, aimed at raising taxes on employees by at least five
percent and on companies by between 20 and 40 percent.
It was the latest in a series of austerity measures since Amman secured a
$723-million loan from the IMF in 2016.
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JORDAN-ECONOMY-DEMONSTRATION 2 LAST AMMAN
Since January, resource-poor Jordan, which suffers from high unemployment
and poverty, has seen repeated price rises including for staples such as
bread, as well as extra taxes on basic goods.
Fuel prices have risen five times since the start of the year, while
electricity bills have surged by 55 percent since February.
The measures have sparked some of the biggest economic protests in five
years.
After a two-hour meeting Tuesday afternoon, head of the trade unions’
council Ali al-Abous called on Jordan’s new premier to “open a constructive
dialogue” with the unions and civil society groups “to get out of this
impasse that the draft income tax law has put us in”.
The head of Jordan’s Bar Association, Mazen Arshidat, said the unions
“were determined to withdraw” the tax reform bill.
– Resignation ‘not enough’ –
Jordan, a key US ally, has largely avoided the unrest witnessed by other
countries in the region since the Arab Spring revolts broke out in 2011,
although protests did flare late that year after the government cut fuel
subsidies.
The latest protests started last week when unions called for nationwide
demonstrations.
They have rocked several other cities, including Irbid and Jarash in the
north, Zarqa in the east, and the southern city of Maan, which saw deadly
riots in the 1980s over rising food prices.
“When the protests began, they weren’t just directed against Mulki as a
person, they were against the income tax draft law and the price hikes,” said
Bushra Abu Jabbara, a 34-year-old pharmacist.
“We want the government to respond to our demands and withdraw the bill,
which hasn’t happened yet.”
A majority of deputies — 78 out of 130 — have said they will vote
against the draft legislation.
“The income tax draft law is almost certain to be dropped now,” Jordanian
political analyst Samih al-Maitah said.
The bill is one of a tranche of measures aimed at slashing Jordan’s public
debt from over 90 percent of gross domestic product to 77 percent by 2021.
King Abdullah said gas supply cuts due to attacks on an Egyptian pipeline
to Israel and Jordan had cost the kingdom some $5.6 billion (4.8 billion
euros).
He added that the closure of the borders with the kingdom’s main export
markets, war-torn Syria and Iraq, and the cost of securing those frontiers
had added to Jordan’s economic woes.
BSS/AFP/HR/1030