Egypt to implement President Sisi’s new economic policies in FY2020/2021

Egypt’s Minister of Finance Mohamed Maait has announced that the FY2020/2021 state budget includes procedures that aim to improve the financial position of employees at state bodies as part of income reforms that Egypt has adopted.

Maait’s comments came in a press conference held on Sunday to expound on the economic decrees President Abdel-Fattah El-Sisi announced late on Saturday.

Maait clarified that all procedures that the president has instructed to be undertaken on Saturday will be implemented as of FY2020/2021.

The procedures include an increase of the tax exemption ceiling to 15,000 pounds, up from 8,000 pounds, in addition to raising the personal exemption ceiling to 24,000 pounds.

FY2020/2021 will also offer a new tax bracket of 2.5 percent for those whose income is under EGP 35,000 annually.

Furthermore, employees under the civil service law will be granted 7 percent of their basic payroll as a salary increment as of 30 June, with a minimum of  75 pounds monthly without a maximum level, while employees who are not covered by the law will get an increment of 12 percent with the same conditions.

Maait also clarified that the ministry is committed to the president’s instructions on providing financial allocations to implement the state’s plans to combat COVID-19, with a total of  100 billion pounds.

On the other hand, the minister said that  187.7 million pounds has been allocated preliminary for the Ministry of a Health, including 153.5 million pounds for buying raw materials to counter the coronavirus, and 34.1 million pounds as bonuses for those who work in quarantine.

Maait asserted that all such procedures came in line with the state’s willingness to help all citizens reap the fruits of the economic reform programme.