House signs off on income tax cuts, raising minimum threshold for exemptions
House signs off on income tax cuts, raising minimum threshold for exemptions: The House of Representatives’ general assembly signed off yesterday on new income tax cuts, Al Masry Al Youm reports. Those earning up to EGP 8k a year will be exempt entirely from taxes, while others earning between EGP 8k-30k will receive breaks ranging from 7.5%-85%, as follows:
- Salary amounts between EGP 8k-30k a year, taxed at 10%, will receive an 85% break;
- Salary amounts between EGP 30k-45k a year, taxed at 15%, will receive a 45% break;
- Salary amounts between EGP 45k-200k a year, taxed at 20%, will receive a 7.5% break;
- Salary amounts higher than EGP 200k a year will be taxed at 22.5% and receive no breaks.
The new rates go into effect one month after they are published in the Official Gazette, came one day after the House signed off on a number of measures meant to shore up the social safety net ahead of an expected rise in fuel and energy prices at the start of the new fiscal year in July. Those included special “hardship” raises and pension increases for state bureaucrats as well as members of the military and police force. The move is set cost state coffers around EGP 60 bn, Prime Minister Sherif Ismail has said.