AMMAN, May 21 (Xinhua) -- Jordan on Monday endorsed a new income tax law to combat tax evasion and increase the number of tax payers, the state-run Petra news agency reported.
Minister of Finance Omar Malhas said the new law, which will be referred this week to the parliament, entails increasing the percentage of Jordanians who pay income tax from 4.5 percent to 10 percent.
The law will help the government generate 300 million dinars (about 423.25 million U.S. dollars) a year, said the minister.
The amendment to the law comes as part of a 700-million-dollar extended fund facility signed between Jordan and the International Monetary Fund in 2016, under which the government pledged to take several fiscal reforms to address rising public debt and budget deficit.
The reforms are also meant to increase the ratio of public debt to GDP to safe levels, said the minister.
A department for financial investigations will be established, tasked with taking legal action against tax evaders, said the minister.
The law also stiffens penalties on tax evaders.
