Evasion, e-products, business models reflect negatively on revenues

AMMAN — Finance Minister Ezzeddine Kanakrieh on Monday denied what social media reported about the International Monetary Fund’s (IMF) request to reconsider salaries and the Social Security Corporation’s (SSC) pensions.

Kanakrieh referred to the meeting he held on Sunday with the Lower House’s Finance Committee on the government’s quarterly financial performance.

The government and MPs reviewed the Treasury’s financial position, which has shown a decline in some revenues, due to several factors, as reported by the Jordan News Agency, Petra.

Among the chief causes cited for the decline in public revenues was tax and customs evasion, the minister said in the statement.

The meeting reviewed current expenditure items, mostly salaries and pensions and the interests on loans and social security contributions.

The value of subscriptions paid annually by the government reaches some JD450 million, the minister added.

On the other hand, there are several positive indicators, Kanakrieh noted.

Those include the increase in exports and tourism growth and the decrease in current account deficit, he noted.

In the meantime, challenges affecting revenues are in part result of change in consumer trends, Kanakrieh said.

The switch to electric and hybrid cars, even e-cigarettes and e-commerce businesses, has had an effect on the state’s revenues. This new reality must be dealt with in a way that does not negatively reflect on domestic revenues, he concluded.