Egypt to raise annual income tax exemption

Egypt is increasing the annual income tax exemption to 36,000 Egyptian pounds, which previously was 24,000 pounds, as the government works on curbing the effects of the global economic crisis, announced the Egyptian Presidency on Sunday.

The decision came during a meeting between President Abdel Fatah al-Sisi, Prime Minister Moustafa Madbouly, and the Minister of Finance Mohamed Maait, to discuss the draft national budget for fiscal year 2023/2024.

Maait highlighted the final indicators of the draft budget, which is set to achieve a growth rate of five percent of Gross Domestic Product (GDP), is expected to have a primary incline of 2.5 percent of GDP.

The budget is also expected to have a 31 percent increase in the growth rate of revenues, to be 2 trillion pounds, according to the statement.

Expenses are expected to increase to 2.838 trillion pounds, and will include a 15 percent increase in wages, an increase in subsidies, grants and social benefits by 24 percent, and an increase in investment allocation to be 512 billion pounds.

The draft budget takes the current global crisis and its negative effects into account, as energy, food and social package costs hike by 150 billion pounds.

The budget also includes the continuous economic reform programme, which aims to increase exports, strengthening industries and the role of the private sector in achieving development.

The president has announced raising the minimum wage for government employees earlier in March, to reach 3,500 percent, and pensions by 15 percent, effective from April 1.