AMMAN, June 14 (Xinhua) -- Jordan's cabinet on Thursday withdrew the controversial income tax draft law from the Lower House following nationwide protests over the bill, state-run Petra news agency reported.
During the first session of the new government, headed by Prime Minister Omar Razzaz, the cabinet said it will launch national dialogue about the law, adding that it will take into account the overall tax burden.
Razzaz said the withdrawal of the draft is in the country's interest as it did not go through deep studies and discussions, adding that the law will focus on combating tax evasion.
He added that Jordan is also committed to the fiscal reforms and will take the social economic conditions into account.
After he was assigned by Jordanian King Abdullah II to form a new government, Razzaz pledged to withdraw the law.
The income tax draft law should not be studied in isolation from other taxes, he said.
Protests over the law led to the resignation of former Prime Minister Hani Mulki amidst nationwide protests demanding the withdrawal of the law and the sacking of the government.
The law, which seeks to increase income tax on individuals and several economic sectors, triggered massive nationwide protests over the past days.
Tens of thousands of Jordanians joined the protests, demanding the withdrawal of the law, which is part of reforms under a deal between Jordan and the International Monetary Fund (IMF).
The controversial bill focuses on three aspects: improving tax collection, curbing tax evasion and boosting tax revenues, which are expected to increase by 300 million dinars (422.2 million U.S. dollars) annually.
The proposed law seeks to increase the number of income tax payers from 4.5 percent to 10 percent.
