Tax-related measures are sovereign decisions — IMF

AMMAN — "Levying any tax is a sovereign Jordanian decision," the International Monetary Fund (IMF) Director of the Middle East and Central Asia Department Jihad Azour said on Sunday.

Azour added that the IMF's role in this regard is of consultative nature, the Jordan News Agency, Petra, reported.

At a press conference in the Moroccan Capital Rabat, Azour said that the IMF supports Jordan's tax reform efforts, highlighting the importance of the participation of more spans of the society segments to make the efforts successful.

He stressed that rebuilding of Iraq and Syria are likely to give a boost to the economies of the region, especially those which host the largest numbers of refugees. 

He said that once the reconstruction projects begin, they should stimulate growth in regional economies.

Azour said that Jordan was one of the countries that were most affected by the regional turmoil, as the country graciously contributed to hosting the larger portion of the refugees and was able to overcome the closure of borders with the neighbouring countries.

The situation led the government to engage in an economic correction programme that aims at reducing budget deficit levels and securing stability for the private sector to function, according to the senior official.

He noted that there are a number of structural reforms in place that aim to improve the economy and create more jobs, which is "the general tenor of the relation between Jordan and the IMF".

Azour explained that the programme would not affect the most vulnerable segments of population.

The official said that the IMF has recommended the tax reforms, which are based on widening the span of taxpayers and cancelling exemptions, special regulations and exceptions.

However, the government seems to be opting for lifting subsidies and directing cash assistance to Jordanian citizens, citing that fact that non-Jordanians have been benefiting from the supported items, including bread.  

Meanwhile, suggested changes to the income tax system are meant to improve the collection methods and prevent tax evasion, officials have said recently.