Egypt votes on VAT
- Mar 25, 2016 | Richard Asquith
The Egyptian parliament is set to vote on a bill to implement VAT in the country as part of a package to reverse the budget deficit and restart economic growth.
The governing party is looking to boost growth from the current 4.2% to 6%, and reduce the deficit from the current 11.5%. Since the overthrow of the last government in 2011, unemployment has remained at over 10%.
Aside from introducing a more efficient VAT regime, replacing the existing 10% sales tax, the government wishes to cut petrol subsidies and reduce the public sector wage bill. The government has been devaluing the Egyptian pound in an effort to boost exports.
No date has been set for the vote on the introduction of VAT and other measures.