Senate endorses income tax bill to meet IMF deadline

AMMAN — The Senate on Tuesday endorsed the draft income tax law as it was submitted from the Lower House without any changes. 

During a session chaired by acting Senate President Marouf Bakhit and attended by Prime Minister Abdullah Ensour, senators said their decision is in line with the country’s higher interests.

Under the government’s economic reform programme, supervised by the International Monetary Fund, a new income tax law should go into effect in early 2015.

To avoid delaying the law, the Senate approved a recommendation by its Finance Committee proposing that the government submit an amended income tax bill to Parliament during its next ordinary session. 

In the meantime, the committee will draw up a list of the required amendments in consultation with economic and social sectors, as the bill has been criticised in its current form.

Senators said the government does not have the jurisdiction to decide specific dates for the endorsement of laws, arguing that committing to a date for the issuance of a law undermines the separation between the legislative and executive authorities. 

Forcing lawmakers to endorse laws to meet a deadline without giving them enough time for proper deliberations has become a frequent practice, senators warned. 

Ensour said the economic correction programme agreed on with the IMF and signed in August 2012, included specific dates on which the income tax law should become effective, noting that the government drafted the law 20 months ago after consultations with various concerned entities. 

The bill was posted and remained on the website of the Legislation and Opinion Bureau for months to receive feedback, the premier added. 

Pointing out that the Cabinet submitted the bill to the Lower House 11 months ago, he said the government could not have done any more than that. 

Ensour stressed the government’s commitment to positively deal with the Senate’s recommendation on amending the law and submitting it to Parliament in its next ordinary session.