Leftist groups reject cancellation of capital gains tax

Left-wing groups on Sunday rejected the finance minister's decision to cancel a tax on capital gains in trading on the Egyptian stock exchange.

The Progressive Youth Association, the Coalition of Revolutionary Youth and the People's Alliance Party said they consider the move a violation of the objectives of the 25 January revolution that toppled Mubarak and which called for social justice.

Egyptian Finance Minister Samir Radwan had earlier this month said the government would levy a capital gains tax of 10 percent as of July 2011, so as to offset a part of the budget deficit that is expected to reach 11 percent in the 2011/2012 fiscal year.

Radwan is believed to have cancelled the taxt due to pressure from stock market dealers.

Opponents of the minister's decision also branded the u-turn a violation of the rights of the poor and a continuation of the former regime’s policy of favoring the wealthy at the expense of the majority of the population.

Translated from the Arabic Edition

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