CAIRO,(KUNA) — Egyptian employees are awaiting an increase of up to 40 percent over their salaries after President Hosni Mubarak approved the new tax law and the issuance of a social allowance at 20 percent of the basic salary, effective as of July 1.
Employees, who are to receive the increase for the first time in 50 years, expressed concern that merchants would in turn increase prices of products.
Financial expert and advisor to the Egyptian Finance Minister Dr. Abdul-Fattah Al-Jabali told Kuwait News Agency (KUNA) that the ministry has issued a list of the salaries and due taxes for each according to the new system. He added that the degree of benefit varies between 48.5 and 75.3 percent.
He explained that an employee with an annual income of 13,000 Egyptian pounds would pay 275 pounds in taxes instead of 1,114, while those with incomes of 20,000 pounds would pay 748 pounds in taxes instead of 1,537 pounds. Each Egyptian pound is equivalent to 0.172 US Dollars.
Al-Jabali added that employees with an annual income of up to 9,000 pounds would be exempted from taxes, stressing that this is the first time ever that such a measure is taken in Egypt.
President Hosni Mubarak had held a conference for the ratification of the new law that was attended by top officials, businessmen and journalists.