The government has decided to raise the exemption level for income tax to LE12,000 per year from LE9000. At the same time, it will increase the maximum tax on revenue to reach 25 per cent from 20 per cent.
People and companies with annual revenue that exceeds LE10 billion per year will be subject to the increased rate of tax. According to the law, everybody with annual revenue that exceeds LE40,000 pays 20 per cent tax.
The rise of the exemption level will cost the budget LE3.2 billion, while the increase of the tax bracket should generate the same amount in new receipts.