‘IMF’ Warns against Lowering General Sales Tax

First Review Report Lowers Expected Growth to 2.4%

تم نشره في Thu 17 November / Nov 2016. 12:00 AM
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AMMAN —Al Ghad— The International Monetary Fund (IMF) lowered the expected GDP growth rate index for Jordan from 2.8 per cent to 2.4 per cent for the current year; due to external shocks, the report explained, which reflected negatively on the median income rate per capita.

Notably, the report emphasised caution and the necessity of gradually lowering the general sales tax, which stands now at 16 per cent, and warned it may be counter-productive, unless concrete evidence indicate sure revenue expansion results.

Once more, the report commended the proficiency of fiscal and monetary policies devised by the Central Bank of Jordan over the years, wherein the JOD-USD peg plays a pillaring economic role.

The report also refers to the National Electric Power Company (NEPCo)’s performance, positively, expecting NEPCo to be making profit by the end of 2016.

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