Ammon News - AMMONNEWS - The Jordanian government is considering imposing an additional eight percent tax on fuel derivatives to finance the costs of newly established municipalities, a government source said.

The source told Al Arab Al Yawm daily newspaper that the expected funds required to finance the new municipalities that were disengaged from the 10-year old municipalities merger program (now nearly 193 municipalities) are projected to reach over 100 million Jordanian dinars.

"Imposing the tax on fuel derivatives, including gasoline, will require an official cabinet decision," the source added.

The decision comes in accordance with Article 48A of the 2011 Municipalities Law, which allows imposing an 8 percent tax on fuel derivatives to finance municipalities and services councils.

The government had previously imposed a 6 percent tax on fuel derivatives, and repealed it last year under major populist pressure and protests to lower fuel prices, Al Arab Al Yawm reported.