The Finance Ministry is proposing a baseline value-added tax rate of 14% (watch), according to statements by Finance Minister Amr El Garhy and Deputy Finance Minister Amr El Monayer, who spoke at a press conference yesterday on the topic. El Garhy expects that the inflationary impact of the VAT will be on the order of 0.5% for low-income earners (which El-Garhy estimated represents c. 10% of the population); 1.5% for the middle class (30-40% of the population); and 2.25% for top wage earners, Al Mal reports. The exemptions list has been tailored to reduce the tax’s inflationary impact on the poor, with 90% of basic food being VAT-exempt. El Garhy reiterated statements by government officials the day before that there will not be an additional tax on automobiles and fuel (watch). The minister explained how crucial the VAT is to lowering the budget deficit, reducing public debt, and incorporating the informal economy into the national tax base (watch). We’ve so far been unable to find a full-length video of the press conference.