Egypt's Cabinet Approves Coronavirus Tax

The draft law - which come into effect from the month of july, pending parliamentary approval - imposes the deductions across the citizens and private sectors on employees with monthly net incomes above $125


1 min read
Egypt's Cabinet Approves Coronavirus Tax

Egypt's cabinet has preliminarily approved a bill that taxes one percent of taxes one percent of citizen's salaries to cushion the impact of CVOID19 on strained government finances, sparking online critcism.

The draft law - which come into effect from the month of july, pending parliamentary approval - imposes the deductions across the citizens and private sectors on employees with monthly net incomes above $125.

All governments all over the world give out money to their citizen except for Egypt to help cushion the effects of COVID19, tweeted by a twitter user. Instead, the Egyptian government reaches into the pockets of Egyptians to take one percent.

The bill also stipulates a 0.5% effective tax on state pensions to help confront some of the economic repercussions resulting from the spread of the deadly virus COVID19, the cabinet said in a statement this week.

On Facebook, some people alleged that depriving pensioners of part of their income was not constitutional.

The draft law provides for a possible exemption of those working in sectors that were economically harmed due to the COVID19 spread, the statement added.

The legislation has yet to scrutinised by parliament and it will also require presidential assent to become law.

Dissent in Egypt is rare under Presidential Abdelfattah al Sisi, whose government's stands accused by observers of stiffling legitimate scrutiny.

An estimated 60,000 detainees in Egypt are political prisoners, according to right groups.

Egypt's economy, like elsewhere, has been hit hard by the Coronavirus infection which has so far officially killed 696 out of 15,003 confirmed cases in the country.

Earlier this month, the International Monetary Fund approved $2.8 billion aid package to help the country meet rising external imbalances.

Also read Health Insurance with Coronavirus

In a bid to support the economy, the Egyptian government has begun to ease some confinement measures, including relaxing curfew hours and partiallyb reopening some hotels.

GO TOP