Jordan`s Prime Minister Hani Al-Mulki resigned after a few days of protests against tax rises and austerity measures. International media has reported that he announced his resignation on Monday.
Last month, Jordanian government proposed a draft of the Income Tax Act. The law has not yet been passed in the parliament. In addition to increasing the personal income tax rate by 5 percent, it has proposed increasing tax by 20 to 40 percent on different companies. Opposing this step of the government the people of the country have been protesting for some past days.
This is the biggest protest in Jordan for the last few years. In such a critical situation, King Abdullah of Jordan summoned the Prime Minister Mulki and asked him to resign.
Jordan has taken 72 crore 30 lac US dollars loan from the International Monetary Fund-IMF in 2016. According to the conditions of the loan agreement, the country has recently initiated economic reforms. And as part of the reform, Jordan took steps to increase taxes.
The country with little natural resources has been suffering from unemployment problems for a long time. Meanwhile, the price of essential commodities including food items has increased since January. Again, more taxes were raised on these products. This year, the price of fuel has already been increased on five occasions and the electricity price has increased 55 percent since February.