Egypt implements temporary tax increase for wealthy
Cairo, June 6, 2014
Egypt's interim president, Adly Mansour, on Thursday signed into law a temporary five per cent income tax increase on individuals earning more than 1 million Egyptian pounds ($139,900) a year, state news agency Mena said. The tax will apply for three years.
Foreign investors will be looking to president-elect Abdel Fattah Al-Sisi to enact reforms to strengthen an economy racked by three years of political upheaval, after he takes office on Sunday.
"Imposing this additional temporary tax comes in the framework of the government's measures to achieve tax reform to ensure the expansion of the income tax base," Mena quoted presidential spokesman Ehab Badawi as saying.
The country of 85 million has been struggling to curb a budget deficit that swelled to around 14 per cent of GDP last year. It is also under pressure to cut subsidies that eat up around a fifth of its budget - but risks triggering protests if it does so.
Those subject to the temporary tax will be given some choice over which areas their funds can be spent in, with the option to direct the money to designated projects in areas including education, health, housing and infrastructure. - Reuters