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Egypt’s Parliament Considers 30% Tax On The Rich

Egypt’s Parliament Considers 30% Tax On The Rich

Photo Credit: Egypt Independent

A draft law is being considered by the Egyptian Parliament to introduce a progressive tax of 30% on annual incomes exceeding LE 1 million, Egypt Independent reports.

Legislative Committee MP MoustafaBakry told Youm 7 that there will be a societal dialogue with Egyptian businessmen to reach the optimum tax percentage, ensuring that many of these businessmen already acknowledge the importance of wealth distribution to lift the financial burdens on the poor.

He added that the bill might be imposed temporarily until a certain level of economic growth is reached.

Another proposal last month introduced a law to impose a 25% tax on incomes exceeding LE 500,000 per year by MP MervatAlexan, who argued that this tax would not harm investment and instead would protect the poor communities.

Progressive taxes are usually seen as a strategy of social improvement as they reduce inequalities between different classes.

Nevertheless, many experts argue that inequality is more effectively reduced by spending on public programs that will enhance the provision of people’s basic needs, including education and health.

There are also fears that the rich will find ways to evade the taxes, as redistribution is influenced by both the progressivity of taxes and the level of taxes collected.

The bill will be further discussed this autumn.

 

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