Money & Banking
The one percent plan: Bold strategy to reverse economic downturn
Egypt will deduct 1 per cent from resident’s salaries for 12 months, starting from July 1.
The new bold measure aims to offset the major economic repercussions seen due to COVID-19.
Both public and private sectors will be hit with the tax but it will only apply to those who have a net monthly salaries exceeding 2000 Egyptian pounds ($AU193).
A tax of 0.5 per cent will also be deducted from state pensions.
The brand new measure follows as Egypt tries to deal with the economic impact of the pandemic, which has brought tourism to a grinding halt, triggered major capital flight and threatened remittances from Egyptians working overseas.
Funds from the new salary tax will go towards supporting organisations and workers specifically impacted by the virus.
The cabinet also said in a statement, that direct support will be offered to some citizens.
Those affected economically by the outbreak may be exempted from the tax.
Egypt now has over 13,400 coronavirus cases, including more than 650 deaths.
On Tuesday, the country recorded its biggest rise in daily cases to date.
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