President Abdel Fattah El Sisi has directed the government to increase the Income Tax Exemption Limit in Egypt from EGP 24,000 to EGP 36,000, according to a statement released by the Egyptian presidency on March 19th.
This directive was issued during a meeting with Prime Minister Mostafa Madbouly and Finance Minister Mohamed Maait to discuss the draft budget for the upcoming fiscal year 2023/2024.
Prominent Indicators of the Draft Budget
During the meeting, Finance Minister Mohamed Maait briefed President El-Sisi on the most prominent final indicators of the draft budget, which aims to achieve a GDP growth rate of 5%, a primary surplus of 2.5% of GDP, and a total deficit rate of approximately 6.37%.
Revenue and Expenditure Targets
The draft budget also includes targets to increase revenue by 31% to EGP 2 trillion, as well as a growth rate of 30.5% in expenditures to reach nearly EGP 2.838 trillion. In addition, the budget allocates EGP 470 billion for wages, which is a 15% increase, and EGP 496 billion for subsidies, grants, and social benefits, which is a 24% increase. Investment allocations are also included in the budget, with approximately EGP 512 billion earmarked for this purpose.
President Abdel Fattah El Sisi’s directive to raise the income tax exemption limit in Egypt will provide some relief to the taxpayers in Egypt. Additionally, the draft budget’s targets for revenue and expenditure growth, as well as the allocation of funds for wages, subsidies, grants, social benefits, and investment, are all aimed at further developing the Egyptian economy. The government’s efforts to promote growth and support its citizens demonstrate its commitment to achieving sustainable development and prosperity for all Egyptians.