AMMAN, Nov. 18 (Xinhua) -- Jordan's Lower House on Sunday endorsed an income tax bill, which is part of fiscal reforms Jordan is working on to offset the budget deficit, state-owned Petra News Agency reported.
At a Lower House session, Jordanian Prime Minister Omar Razzaz said that the law needs to be passed, otherwise Jordan would be forced to pay higher interests rates on its debt.
He added that Jordan is keen on reducing its high public debt, which according to latest figures stands at about 96 percent of the gross domestic product.
"The new law is a necessary step to build a stronger economy that fuels growth and in line with national interests and priorities," he said.
The tax bill exempts the annual income tax for households earning less than 20,000 Jordanian dinars per year (about 28,000 U.S. dollars) in 2019 and lowered it to 18,000 dinars in 2020.
For individuals, the Lower House decided to exempt the annual income tax for individuals earning less than 10,000 dinars in 2019 and less than 9,000 dinars in 2020.
The bill, which is part of reforms under a program with the International Monetary Fund, has been under national debate for a long time.
Jordanians protested the previous drafts of the bill which increased the pressure on them, leading to the resignation of former Prime Minister Hani Mulki.
Razzaz was appointed after Mulki's resignation and pledged to come up with a satisfactory bill.
The new bill still needs to go to Jordan's Senate for approval.
