Jordan PM resigns after tax protests, new PM appointed

AMMAN - Jordanian King Abdullah II on Monday appointed Omar Razzaz, a former education minister, as new prime minister after the resignation of Hani Mulki following nationwide protests, according to a Royal Court statement.

The embattled prime minister Hani Mulki on Monday submitted resignation to King Abdullah II after major protests were held across the country with tens of thousands of demonstrators calling for the sacking of the government.

Demonstrators demanded the withdrawal of the income tax law, which is part of several fiscal reforms as part of a $700 million extended fund facility program signed between Jordan and the International Monetary Fund in 2016.

The bill mainly aims to improve tax collection, curb tax evasion and boost tax revenues, which are expected to increase by 300 million Jordanian dinars ($423 million) annually.

In addition, the proportion of income taxpayers in Jordan is expected to rise from 4.5 percent to 10 percent once the bill is enacted.

The legislation has been resisted by multiple sectors, including professional associations and investors.