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Ammon News - AMMONNEWS - Prime Minister Hani Al Mulqi, said the government will rethink the "unjustified" real estate tax exemptions that did not achieve their objectives, and will redirect them elsewhere in order to meet their objectives.

The premier also said his government had recently taken measures to stimulate the real estate sector but had not sensed any increase in property registration activity at the Department of Lands. He said the government would assess and monitor the situation to make sure that the exemptions meet their aims.

Al Mulki also said at an Iftar (Ramadan fast breaking dinner) organized by the Jordan Chamber of Commerce that he hoped the real estate market would pick up after the Eid al Fitr Holiday starting this week.

The government had reduced property sale registration fees by 50%, or 2.5% instead of 5%, and also cut the real estate sale tax by 50%, becoming 2% instead of 4%.

Mulqi said any tax reduction is "a difficult matter" at present due to the measures that had been in place to reduce the Kingdom's debt and budget deficit, noting that the public debt had exceeded 93% of GDP, which is a breach of the public debt law.

The government, he added, is looking to cut this percentage in the coming years and build a solid economic base, assuring that "every penny that will be paid in taxes or fees will go to its right place and in the right direction". Mulqi also stressed the importance of setting a basic foundation for a partnership between the public and private sectors, while ensuring there will not be any reduction in the public debt at the expense of economic activity.

The prime minister also said the government's action plan that he sent to His Majesty King Abdullah included measures to raise women's participation in the labor market within "a flexible" approach regarding work hours and leaves of absence.

He said that the country cannot bear the burden of employing Jordanians alone without a real partnership with the private sector.

Mulqi also said the government had in place a fiscal reform programme that was not imposed by the International Monetary Fund but it had asked for, stressing spending controls and priorities while ensuring that money goes to the Kingdom's priority projects.