A family buys groceries at a market, ahead of demonstrations against Egyptian President Mohamed Morsi, in Cairo (Photo: Reuters)
Egypt's annual income and sales tax revenues reached LE226 billion ($32.2 billion) on Wednesday, a source at the Income Tax Authority told Al-Ahram Arabic news website.
Thursday marks the end of the grace period given to taxpayers for the 2012/13 financial year.
Egypt is forecasting total income and sales tax revenues to reach some LE233 billion in the fiscal year which ended on 30 June 2013, according to the state budget.
The government of ousted president Mohamed Morsi had forecast income and sales tax revenues to increase by 37 percent to reach LE321.29 billion in 2013/14 as it planned to increase sales tax.
The Muslim Brotherhood government assessed revenues from sales tax would increase by more than 50 percent in one year to reach LE126.5 billion in the fiscal year that started on 1 July.
Revenues from sales tax, always referred to as a very regressive tax, were expected to reach 35.5 percent of fiscal revenues in 2013/14 versus some 21 percent in 2012/13.
The Morsi and Mubarak governments both announced plans to increase state income from sales taxes by transforming it into a value-added tax (VAT) that would be extended to virtually all products with a handful of exceptions.
Raising sales tax on goods and services and slashing fuel and food subsidies form part of an economic programme Egypt's government negotiated with the International Monetary Fund (IMF) for a $4.8 billion loan agreement.
The budget debated in the dissolved Shura Council was not passed as political events took over. Mohamed Morsi was toppled from the presidency on 3 July in what his supporters have called a military coup d'état.