Minister of Finance Mohammed Moaet said on Monday that the amendments adopted by President Abdel Fattah al-Sisi would ease the tax burden on the citizens, according to a report by Al-Ahram online.
Moeat added that the limit of tax exemption increased from LE 7200 to LE 8000. The tax exemption increased to 85 percent, 45 percent and 7.5 percent for first, second and third tranche of the annual income.
The Minister said that the new tax exemptions will put into effective starting from July 1. Citizens whose income reach LE 8000 will be exempted from paying taxes completely.
Moeat explained that citizens whose income ranges between LE 8000 and LE 30000 would pay taxes on 15 percent of their income and citizens whose income ranges between LE 30000 to LE 45000 would pay taxes on 55 percent of their income. Citizens whose income ranges between LE 45000 and LE 200000 would pay taxes on 92.5 percent of their income.
According to Moeat, the new exemptions supports the principle of tax justice and achieves principle of progressive tax on top earners.