Egypt to raise annual income tax exemption to EGP 36,000

Ahram Online , Sunday 19 Mar 2023

Egypt’s President Abdel-Fattah El-Sisi gave his directives to raise annual income tax exemption to EGP 36,000 from EGP 24,000, the Egyptian Presidency announced.

President Abdel-Fattah El-Sis in his meeting on Sunday with Prime Minister Mostafa Madbouly and Minister of Finance Mohamed Maait in Cairo. Photo : Egyptian Presidency

According to the Egyptian Presidency, the directives come as part of the state’s efforts to mitigate the effects of the global economic crisis and its repercussions on citizens.

The directives came during a meeting held at the Presidency between President El-Sisi, Prime Minister Mostafa Madbouly, and Minister of Finance Mohamed Maait to discuss the draft FY 2023/24 budget.

The Minister of Finance presented the most prominent final indicators of the draft budget, which aims to achieve a growth rate of 5 percent of GDP, and which will witness a primary surplus of 2.5 percent of GDP with a total deficit rate of about 6.37 percent.

The budget will also see an increase in the growth rate of revenues to about 31 percent to reach more than EGP 2 trillion.

It will also see a 30.5 percent increase in expenses to reach about EGP 2 trillion and 838 billion.

The expenses include an increase in wages by 15 percent, to reach EGP 470 billion; an increase in subsidies, grants, and social benefits by 24 percent, to reach EGP 496 billion; and an increase in investment allocations to reach EGP 512 billion.

According to the Egyptian Presidency, Minister Maait explained that the draft budget takes into consideration the negative effects of the current global crisis – as a result of the significant rise in energy and food prices –  as well as the cost of the social package – estimated at EGP 150 billion.

In addition, the budget takes into consideration continuing the economic reform program, with the aim of increasing and stimulating exports, and strengthening industry and the role of the private sector in achieving development.

Earlier in March, El-Sisi announced raising the minimum wage for government employees to EGP 3,500 and pensions by 15 percent - as part of a wide-ranging social package to alleviate ramifications of the global economic situation on the public - starting 1 April.

The minimum wage for government employees was last raised in October 2022 from EGP 2,700 to EGP 3,000.

Short link: