Parliamentary sources said that the government rejected the proposal of MP Mohamed Elsewedy, head of the Support Egypt parliamentary coalition, which was approved by parliament last year to raise the threshold for income tax to EGP 24,000 per year.
The sources added that the coalition, Egypt’s largest political coalition in parliament, is facing great embarrassment, especially as the proposal was submitted by its head.
In the last legislative term, the House of Representatives’ budget committee sent three proposals to the Ministry of Finance on lifting the exemption limit: the first was at EGP 14,400, the second EGP 20,000, and the third EGP 30,000. Parliament approved a proposal submitted by MP Mohamed Elsewedy to raise the threshold to EGP 24,000.
A senior official of the budget and planning committee said he does not think the government will agree to raising the threshold to EGP 24,000, noting that the government intends to collect taxes of EGP 770bn, up from EGP 603bn.
The expected tax revenues for the next fiscal year (FY) target collecting EGP 320bn in value added tax, customs worth EGP 45.6bn, other tax revenues worth EGP 37bn, and EGP 367bn in general taxes.
The financial statement of the draft budget for the next FY issued by the Ministry of Finance targets a budget deficit of 8.4% and growth of 5.8%.
MP Mohamed Fouad, a member of the planning and budget committee, said that the deficit target in the draft budget for the next FY is difficult to achieve, yet it was placed in the draft budget in hopes that it would be reached, though the reality is different as the deficit has recently been in the double digits, he said.