Egypt says sales tax hikes on hold

2012-12-26 14:50
File, AP

File, AP

Multimedia   ·   User Galleries   ·   News in Pictures Send us your pictures  ·  Send us your stories

Cairo - Egypt's government will not implement a series of planned tax increases until it completes a dialogue with different parts of society, Al-Mal newspaper has quoted Planning Minister Ashraf al-Araby as reaffirming.

The government on Tuesday began a series of meetings with businessmen, trade unions, non-governmental organisations and other groups to persuade them of the need for austerity measures to resolve the country's financial crisis.

Earlier this month it announced increases in the sales tax on a range of goods and services, only for President Mohammed Morsi to suspend them within hours as the country prepared for a referendum on a contentious new constitution.

The unpopular measures are deemed necessary to secure $4.8bn Egypt is seeking from the International Monetary Fund. The government has asked the IMF to delay by a month a meeting it had scheduled to approve the loan to allow it to seek more support for the moves.

But the administration is under increasing pressure to take steps to shore up the country's finances, with some citizens worried enough to withdraw their savings from banks and exchange them into hard currencies while its international credit rating has also been cut.

"The government will not implement the increases earlier than in two weeks, after the end of the social dialogue that the government is currently holding," al-Mal quoted al-Araby as saying.

On Tuesday, the ministers of finance and investment met the members of chambers of commerce and industry and the investors' union in the first round of its social dialogue, al-Mal said.

Al-Araby said Egypt needed $14.5bn to plug an external finance gap through the end of June 2014. In addition to the IMF, the government has been negotiating for loans from the World Bank, the African Development Bank and other international organisations.

He said the economy was passing through a crisis that it would overcome as soon as the country's political polarisation came to an end.

The austerity measures include increases on the sales tax on goods and services that range from alcoholic beverages, cigarettes and cellphone calls to automobile licences and quarrying permits.

Al-Ahram newspaper quoted Finance Minister Mumtaz al-Saeed on Tuesday as saying the higher sales taxes would be applied on 21 types of goods and services.

Read more on:    mohammed morsi  |  egypt  |  north africa
NEXT ON NEWS24X
SHARE:

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
2 comments
Add your comment
Comment 0 characters remaining
 

Inside News24

 
SPONSORED CONTENT
When is a mountain more than just a mountain? 2014-12-18 07:26

When it’s an adventure! A group of Old Mutual employees found out how much is enough courage, endurance and camaraderie to take on Africa's highest peak.

/News
 

How to make this a sensual, sexy summer!

Summer is the perfect time for rekindling cooling passions and for shedding your inhibitions as well as your clothes…

 
 

I love summer.24

This is what South Africans Googled in 2014!
This hilarious song is your new holiday anthem
The world's least visited destination is breathtaking!
LOL treadmill fail!

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Kalahari.com - shop online today

2DAYS ONLY – 30% off Appliances

Coffee makers, blenders, fans, juicers and more. T&Cs apply. Shop now!

2 DAYS ONLY – 40% off books

Get 40% off when you buy 2 books. For two days only! T&Cs apply. Buy now!

Up to 50% off on outdoor gear

Save on chairs, blankets, cooler bags, umbrellas and more. Shop now!

Save on Samsung

Cameras, mobile phones, TVs, Tablets and more. While stocks last. Shop now!

Grand Theft Auto 5

Now available on PS4, Xbox One and PC from R649. Buy now!

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

Horoscopes
Aquarius
Aquarius

You may be emotionally defensive or reserved today. You need to step up today as there may be extra responsibilities to deal with....read more

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.