Jordan's telecom companies to resort to law due to tax hike

Telecom operators in Jordan threatened to resort to law after the government increased taxes on smartphones and mobile lines. In a press conference Saturday, representatives of the three telecom operators in Jordan -- Umniah, Orange Jordan and Zain Jordan, said they will resort to international arbitration as the government's increase of the tax is "unjustified." They called on the government to go back on its decision. Ahmad Hanande, CEO of Zain Jordan, said the "unwise decision" will increase burdens on the telecom sector and reduce revenues. On Thursday, Jordan increased taxes on mobile phones from 8 percent to 16 percent. The government also increased taxes on mobile line subscriptions from 12 percent to 24 percent.