Egypt to Deduct Small Portion of Citizens’ Salaries amid Pandemic
Egypt will reportedly begin deducting 1% from people’s salaries for 12 months beginning July 1 in an effort to offset the economic fallout caused by the coronavirus pandemic. The “tax” will apply to both public and private employees with net monthly salaries exceeding 2,000 Egyptian pounds ($127). Cairo will also deduct 0.5% from earnings allocated to state pensions. The move comes as the Egyptian government is grappling with the economic impact of the global health crisis, which has brought the nation’s vital tourism industry to a standstill, induced major capital flight and decreased remittances from citizens working abroad. The Arab world’s most populous nation has confirmed more than 15,000 coronavirus cases and just under 700 resulting deaths. Egyptian health officials on Tuesday reported 720 new diagnoses, the highest daily toll in the country. Egypt has thus far received nearly $2.8 billion in emergency support from the International Monetary Fund.