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Egypt to increase tax exemption limit amid rising cost of living

Egypt's President Abdel Fattah al-Sisi attends the second edition of the summit of the Green Middle East Initiative, held on the sidelines of the Cop27 climate conference Reuters/Bandar Algaloud/Courtesy of Saudi Royal Court
President Abdel Fattah El Sisi issued a directive to increase the tax limit to EGP36,000 ($1168.68) from EGP24,000 per year

Egypt will increase the annual income tax exemption limit to mitigate the effects of the global economic crisis and its repercussions on citizens.

President Abdel Fattah El Sisi issued a directive to increase the tax limit to EGP36,000 ($1,168.68) from EGP24,000 ($776.91) per year, Ahram Online reported.

The country aims to achieve a growth rate of five percent of GDP and will witness a primary surplus of 2.5 percent of GDP with a total deficit rate of about 6.37 percent, finance minister Mohamed Maait said in his presentation for the fiscal year 2023/24 draft budget.

The budget expects revenue to surge by nearly 31 percent to more than EGP2 trillion.

However, a 30.5 percent increase is forecast in expenditure, reaching about EGP2.83 trillion. Expenses include increasing wages by 15 percent to EGP470 billion; growing subsidies, grants and social benefits by 24 percent to EGP496 billion; and lifting investment allocations to EGP512 billion.

The finance minister said that the draft budget considers the adverse effects of the current global crisis and the cost of the social package, estimated at EGP150 billion.

Earlier, El-Sisi announced raising the minimum wage for government employees to EGP3,500 and pensions by 15 percent from April 1.

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