New car radio tax draws Egyptians’ fury, sarcasm

  • Date: 06-Jul-2020
  • Source: Arab Weekly
  • Sector:Economy
  • Country:Egypt
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New car radio tax draws Egyptians’ fury, sarcasm

CAIRO - Egypt's parliament approved a governmental proposal to increase taxes on radio and wireless equipment, the latest in a series of austerity measures that have caused controversy and cynicism in the country.

According to the new law, car owners with electronic or entertainment devices or whose vehicle is equipped to use such devices are required to pay an annual fee of LE 100 ($6.24). While the audio tax has been in effect since the era of the late President Gamal Abdel Nasser and the new value car owners are required to pay is minimal, it follows other austerity measures, such as a 1% decrease in state employees' salaries that have caused widespread discontent.

These new taxes are part of government efforts to secure an annual return of some $5 billion to cover part of the public budget deficit. Much of the public, however, accuses the government of trying to solve its financial problems by taking from the pockets of already strained citizens.

Many Egyptians are also concerned that the government will eventually increase other taxes to help overcome its economic crisis instead of looking for other ways to maximise public revenue and spending on national projects.

A woman asks for money at a traffic