Egypt's President Morsi unveils raft of tax, subsidy reforms

Advice, information and discussion about Egypt in general.

Moderators: DJKeefy, 4u Network

User avatar
DJKeefy
Site Administrator
Site Administrator
Posts: 10778
Joined: Thu Jan 13, 2005 4:08 pm
Location: UK
Has thanked: 807 times
Been thanked: 1815 times
Gender:
Egypt

Egypt's President Morsi unveils raft of tax, subsidy reforms

Post by DJKeefy » Mon Feb 25, 2013 4:40 pm

President Morsi introduces novel tax and subsidy reforms, discusses Egypt's short-term economic prospects in televised interview Sunday night.

In a televised interview Sunday night, President Mohamed Morsi unveiled a raft of new tax reforms.

For one, the president announced that the minimum monthly income for income tax exemption would be raised from LE9000 to LE12,000, which, he said, "will alleviate the tax burden on an additional 2.5 million Egyptian families."

He also declared that social security pensions for low-income families would be raised by LE100 to LE400 a month according to the new state budget.

The president spoke at length about the state of the national economy during the two-hour interview, including the issues of foreign borrowing, taxation, subsidy reform and social justice.

He announced that the price of one ardeb (198 kg) of wheat would be raised by LE20 to LE400 in order to boost local production, and that new measures would be taken to facilitate supply, which, he said, "I know remains a problem for farmers."

"The price of rice has gone up by LE2000 as we had promised farmers," Morsi went on, "since we are now exporting rice."

The president also confirmed implementation of a progressive property tax, starting in July of this year, on all properties worth LE2 million and above, saying that "50 percent of property tax revenue will be spent on providing public services such as shantytown development and healthcare."

Regarding a proposed $4.8 billion loan Egypt has been struggling to secure from the International Monetary Fund, the president asserted that the IMF loan "also represents certification that Egypt’s economy is capable of surmounting the current period." He added that the IMF "does not intervene in our affairs, but we need this certification in order to unlock more investment."

In January, the European Council announced that the EU would grant a $6.5 billion load to Egypt once the latter had sealed its loan agreement with the IMF.

As for state subsidies, which require reform in order to meet the IMF's loan conditions, the president pledged that subsidies on goods and transportation "will remain in place for those in most need of them."

As evidence of the government's ability to target subsidised goods towards the needy, Morsi cited the success of a new allocation system for butane gas canisters, asserting: "This winter is the first in 15 years to see no shortages of butane gas canisters."

"Microbus and truck drivers who need subsidised fuel will find it available at the same prices," the president added, "but not those who steal and smuggle it for profit."

Last week, the Ministry of Petroleum and Mineral Resources announced plans to begin rationing subsidised fuel through a new 'smart-card' system beginning in July of this year.

Asked about recent statements allegedly made by Prime Minister Hisham Qandil – that Egyptians would only be entitled to three loaves of subsidized bread per day – Morsi vehemently denied them as "media fabrications." The president also denied that there were any problems regarding the availability of subsidised bread, though in some areas, he conceded, "the quality of the bread may be less than optimal."

According to the president, a system of universal health insurance will be implemented in three phases beginning next year, with LE5 billion to be allocated from the next budget during the first phase.

Morsi also promised to issue a decree in the near future absolving students in the public education system who had failed to pay their tuition fees for the current academic year.

The president went on to deny that there were any special ties between certain businessmen affiliated with the Muslim Brotherhood – the group from which Morsi hails – and his administration. "We suffered from this phenomenon under the former regime, and do not want to see it repeated," he said.

President Morsi also confirmed that draft legislation was now on the drawing board aimed at reinstating Port Said's duty-free zone – abolished by the Mubarak regime in 2002 – and that LE75,000 had been earmarked for compensating the families of Port Said residents slain in last month's political violence.

Source: http://english.ahram.org.eg/News/65573.aspx


Image

User avatar
Dusak
Egyptian Pharaoh
Egyptian Pharaoh
Posts: 5874
Joined: Sun May 11, 2008 2:29 pm
Location: LUXOR
Has thanked: 5895 times
Been thanked: 7328 times
Gender:
Thailand

Re: Egypt's President Morsi unveils raft of tax, subsidy ref

Post by Dusak » Mon Feb 25, 2013 9:08 pm

No shortage of gas this winter? Good job he don't live in Karnak then. Worst I've seen in the six years I've lived here.

A-Four
Egyptian Pharaoh
Egyptian Pharaoh
Posts: 3795
Joined: Wed Jul 29, 2009 10:04 pm
Location: London
Has thanked: 1594 times
Been thanked: 1695 times
Gender:
United Kingdom

Re: Egypt's President Morsi unveils raft of tax, subsidy ref

Post by A-Four » Tue Feb 26, 2013 8:17 pm

The presidents statement that was expected to be broadcast on Egyptian TV at 9p.m. was delayed by 5 hours, when with out warning up it came at 2a.m., alas, when every one had got fed-up of waiting, and cleared off to bed,...........those that waited up though, would have realized that he was more than.....................'economical with the truth'. :wi .

User avatar
Chocolate Eclair
Royal V.I.P
Royal V.I.P
Posts: 1621
Joined: Sun Aug 22, 2010 4:56 pm
Location: Luxor Egypt
Has thanked: 124 times
Been thanked: 752 times
Gender:
Egypt

Re: Egypt's President Morsi unveils raft of tax, subsidy ref

Post by Chocolate Eclair » Wed Feb 27, 2013 9:03 am

Uhm!! that seems as though the rafts are not aimed at Luxor, not many places at 2million LE about, and not many wages at 9000le per month. So seems like Cairo and the Cities will bare the brunt. Think i will open a coffee and shisha shop in Tahrir Square....

Lets hope the Tourists pick up for those with big properties so they can pay their bills, it may also mean a drop in property prices to avoid the tax

User avatar
carrie
Egyptian Pharaoh
Egyptian Pharaoh
Posts: 4327
Joined: Mon Mar 14, 2005 10:46 am
Location: luxor
Has thanked: 2778 times
Been thanked: 5362 times
United Kingdom

Re: Egypt's President Morsi unveils raft of tax, subsidy ref

Post by carrie » Thu Feb 28, 2013 5:37 pm

Don't know about Karnak Dusak but there has been a decided shortage of gas here in the centre of Luxor for over twelve months.
We have never experienced so many power and water cuts before either.

User avatar
carrie
Egyptian Pharaoh
Egyptian Pharaoh
Posts: 4327
Joined: Mon Mar 14, 2005 10:46 am
Location: luxor
Has thanked: 2778 times
Been thanked: 5362 times
United Kingdom

Re: Egypt's President Morsi unveils raft of tax, subsidy ref

Post by carrie » Thu Feb 28, 2013 5:39 pm

Can anyone also explain what the "quality of bread being less than optimal" means.

LovelyLadyLux
Egyptian Pharaoh
Egyptian Pharaoh
Posts: 3252
Joined: Sun Nov 22, 2009 2:27 am
Has thanked: 985 times
Been thanked: 2256 times
Canada

Re: Egypt's President Morsi unveils raft of tax, subsidy ref

Post by LovelyLadyLux » Fri Mar 01, 2013 12:26 am

Probably means that sawdust is being substituted for flour and any nutrient count is zero. Sad that people have to eat bread that could be used as substitutes for housing bricks.

  • Similar Topics
    Replies
    Views
    Last post
  • Egypt unveils pay rises ahead of fresh subsidy cut
    by DJKeefy » Wed Jun 06, 2018 9:45 pm » in Politics and Religion
    1 Replies
    208 Views
    Last post by Major Thom
    Thu Jun 07, 2018 4:05 am
  • Egypt's Islamists rally to support President Morsi
    by DJKeefy » Fri Jun 21, 2013 5:29 pm » in Know Egypt
    4 Replies
    245 Views
    Last post by Hafiz
    Sun Jun 23, 2013 6:25 am
  • Egypt's President-elect Mohamed Morsi gives speech to nation
    by DJKeefy » Sun Jun 24, 2012 9:30 pm » in Know Egypt
    1 Replies
    253 Views
    Last post by denisegr
    Mon Jun 25, 2012 10:52 am
  • PRESIDENT SHAFIQ OR MORSI
    by Bombay » Thu Jan 23, 2014 11:12 pm » in Politics and Religion
    4 Replies
    716 Views
    Last post by Chocolate Eclair
    Sun Jan 26, 2014 3:11 am
  • An interview with President Morsi...
    by LivinginLuxor » Mon Jul 01, 2013 9:12 am » in Know Egypt
    0 Replies
    243 Views
    Last post by LivinginLuxor
    Mon Jul 01, 2013 9:12 am