Jordan Times
Wednesday, February 11, 2004
'Gov't might resort to higher
taxes on luxury commodities to reduce increase in fuel prices'
Two major corruption cases referred to GID's Anti-Corruption Unit — Khader
By Khalid Dalal
AMMAN — The government might resort to a higher increase in taxes on some luxury commodities to reduce the percentage of an intended hike in fuel prices, Government Spokesperson Asma Khader announced.
Speaking after a Cabinet session, Khader said these luxury commodities include cigarettes, alcoholic drinks and mobile phone charges.
And to make up for the deficit in fiscal budget, the government will seek further savings in expenditures to exceed the JD80 million cut announced earlier, the minister told reporters.
These measures might be taken to minimise any increases the government intends to introduce on basic items such as fuel derivatives, said Khader, also minister of state.
The minister's statement came as Prime Minister Faisal Fayez on Tuesday continued meetings with legislators to discuss plans to raise fuel prices and taxes to address the budget deficit.
Fayez told members of three parliamentary blocs Tuesday that he is well aware of the suffering of the Jordanian people and of the fact that the hike decision is not popular, but that his government is transparent in showing facts to the people.
And the government's openness and transparency are reflected in the premier's ongoing meetings with deputies, Khader said.
These ongoing meetings, she added, aim to help reach an acceptable formula to both sides regarding the plan to raise fuel prices and taxes.
She added that the two sides are after one goal now: “How to ease the impacts of any government decision to increase prices and taxes on people, especially the limited-income citizens.”
And as part of its transparency, said Khader, the government has recently referred the documents of two major corruption cases to the General Inelegance Department's Anti-Corruption Unit for investigation.
“The authorities are now in a process of gathering information and then the cases will be referred to courts of law,” she said.
Khader declined to give further details, but said the government is “sincere” in its efforts to fight corruption and it has a green light from His Majesty King Abdullah to refer those involved in cases of corruption to court and hold them responsible under the law.
Last month, the Lower House rejected a price and tax hike on several commodities proposed by the government, asking for alternative measures.
Forty-five deputies out of 67 present during the second public debate session of the 14th Parliament voted down proposals put forth by the Cabinet to raise the fuel prices by an average nine per cent and increase sales tax by three to six per cent.