Egyptian President, Hosni Mubarak, said the new income tax law will help cut taxes by half and ease the tax burden on citizens, thus ensuring a bigger income for families and guaranteeing better living conditions.
Addressing a group of 180 economists on Wednesday, Mubarak said the law was signed following modifications to customs tariffs. Mubarak also pointed out that reforms in customs and taxes are the first step towards more public action, adding the modifications introduced in the income tax will be followed by similar accomplishments in the sales tax in a way that makes it an easy tool that serves and does not hamper economic activities.
Mubarak maintained that as much as LE 50 billion will be pumped into the capital of Egyptian banks in a bid to bolster their ability to extend loans and operate efficiently. The President noted that some banks would be merged into other bigger banks.
The updated economic policy will seek to increase the ratio of Egypt's exports value to Gross Domestic Product (GDP) to around 40 per cent from the current 20 per cent, said the president.