Jordan is to increase the price of fuel and bread as it seeks tax revenues to boost its economy, which has been shaken by the war in neighbouring Syria, AFP reported Tuesday (January 16th).
The latest tax hikes come as Jordan faces a public debt of some $35 billion, equivalent to 90% of its gross domestic product (GDP).
Tax on fuel is to increase from 24% to 30%, and the price of bread is to double from next month, Jordanian media reported Monday.
The tax on soft drinks is to jump from 10% to 20% and cigarettes are to cost 0.20 Jordanian dinar ($0.28) more per pack than previously.
A value-added tax of 5% also will be imposed on jewelery.
The government, which hopes to increase tax revenues by $761 million, also pledged "financial aid" to struggling families affected by the price hikes.
Last year, price hikes on an array of goods and services sparked protests in which demonstrators called for the cabinet to resign.
Jordan's economy has been rattled by the conflicts in Syria and Iraq, and the country has taken in hundreds of thousands of refugees from its neighbours.
Jordan says the Syrian crisis has cost it more than $10 billion over the past five years.
