May 22, 2018
Taxes and Social Justice Policy Brief in Four Countries - Jordan

Introduction


The Jordanian economy suffers from many structural imbalances embodied by the chronic and persistent deficit in the public budget and the high rates of poverty and unemployment. This situation has resulted from successive Jordanian governments adopting specific economic options based on a set of principles: liberalizing the Jordanian economy, privatizing state-owned enterprises, liberalizing foreign trade, liberalizing prices, lifting subsidies on goods, including commodities, and implementing austerity policies on basic rights and services such as education, health, labor and social welfare, in addition to adopting unfair taxation policies that have deepened social inequalities and contributed to poverty expansion. This was coupled with a delay in the progress towards strengthening the course of democratic transition, weakening some constitutional institutions, whether executive, legislative or supervisory and weakening law respect and enforcement. Therefore, the scope of tax evasion widened weakening the chances of building social balances between the various components of the society and the Jordanian State. Social dialogue tools have been weakened by the absence of representatives of vulnerable social classes and groups from the poor and lower segments of the middle class.


Imbalances have deepened over the past years due to the political and security crises in Syria and Iraq, which resulted in closing the borders in face of goods and people between Jordan and the most important economic partners, Iraq and Syria. 


This is a part of "Taxes and Social Justice Policy Brief in Four Countries (Egypt, Jordan, Lebanon and Palestine)" studies


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