CAIRO, Egypt - The Egyptian Parliament approved on Monday new tax and fee hikes on a number of imported goods and entertainment activities to boost government revenue amid strained public finance.
The Parliament approved amendments to three laws that will impose an additional one per cent stamp tax on life insurance premiums, two per cent on physical injury insurance premiums and 11 per cent on land, river, maritime , and air transport insurance premiums, Xinhua quoted the state-run Ahram Online news website report.
An additional three per cent tax will also be imposed on all goods purchased from duty-free shops that exceed US$5, with a minimum tax of US$1.5.
Foreign films in cinemas, operas and ballet shows, as well as circus events, will also be subject to a new five per cent tax. In addition, there will be another three per cent tax on food and beverages at these locations. The amendments also stipulate a new 10 per cent tax on public parties in sporting and social clubs.
"The new taxes will be imposed on luxury and non-essential goods only, and will not impact low-income citizens," Egyptian Minister of Finance, Mohamed Maait, told Parliament members.
Maait said the new package is expected to generate five billion Egyptian pounds (US$160 million) in revenues, an amount necessary to help narrow the widening budget deficit because of increasing public expenditure.
Maait said the generated revenues will be used to cover part of the money allocated to social safety programmes and Takaful and Karama pensions, which will cost 270 billion Egyptian pounds, and provide fuel and bread subsidies, which will cost 150 billion Egyptian pounds, in the fiscal year of 2023-2024.
Meanwhile, a new 10 per cent tariff has been imposed on a number of imported luxury goods, according to Ahram Online. - BERNAMA-XINHUA
The Parliament approved amendments to three laws that will impose an additional one per cent stamp tax on life insurance premiums, two per cent on physical injury insurance premiums and 11 per cent on land, river, maritime , and air transport insurance premiums, Xinhua quoted the state-run Ahram Online news website report.
An additional three per cent tax will also be imposed on all goods purchased from duty-free shops that exceed US$5, with a minimum tax of US$1.5.
Foreign films in cinemas, operas and ballet shows, as well as circus events, will also be subject to a new five per cent tax. In addition, there will be another three per cent tax on food and beverages at these locations. The amendments also stipulate a new 10 per cent tax on public parties in sporting and social clubs.
"The new taxes will be imposed on luxury and non-essential goods only, and will not impact low-income citizens," Egyptian Minister of Finance, Mohamed Maait, told Parliament members.
Maait said the new package is expected to generate five billion Egyptian pounds (US$160 million) in revenues, an amount necessary to help narrow the widening budget deficit because of increasing public expenditure.
Maait said the generated revenues will be used to cover part of the money allocated to social safety programmes and Takaful and Karama pensions, which will cost 270 billion Egyptian pounds, and provide fuel and bread subsidies, which will cost 150 billion Egyptian pounds, in the fiscal year of 2023-2024.
Meanwhile, a new 10 per cent tariff has been imposed on a number of imported luxury goods, according to Ahram Online. - BERNAMA-XINHUA