Jordanian PM resigns amid tax outcry, mass protests

June 4 (UPI) -- After two years in office, Jordanian Prime Minister Hani al-Mulki resigned Monday after days of large-scale street protests against a proposed tax hike.

For five days, Amman has been the scene of Jordan's largest demonstrations in years, in which demonstrators called for Mulki's removal.

A recent government proposal called for a 5 percent income tax increase and other fiscal challenges.

The proposals have not gone over well in the capital of Amman, which already has one the highest costs of living in the Arab world.

Mulki resigned almost two years to the day since he was sworn in as Jordanian prime minister. In office, he improved Jordan's economy amid regional turmoil and a refugee crisis.

Protesters have demanded the removal of bread subsidies and oppose a sales tax hike this year designed to pare down a $37 billion national debt.

Jordan's debt is 95 percent of the country's gross national product, largely from a $723 million line of credit extended in 2016 by the International Monetary Fund. Fuel costs have increased five times this year and the cost of electricity has risen 55 percent.

Mulki's resignation was accepted by King Abdullah II. Officials said education minister and former World Bank economist Omar al-Razzaz will become the new prime minister.