In an effort to bolster its strained finances, the Egyptian parliament approved tax and fee increases on several imported goods and entertainment activities on Sunday. The amendments, as reported by the state-run Ahram Online, will affect three laws. The revised taxes include a 1% stamp tax on life insurance premiums, a 2% increase on physical injury insurance premiums, and an 11% hike on transportation insurance premiums.
Further, a 3% tax will be levied on goods exceeding $5 from duty-free shops. Entertainment sectors aren’t exempt; foreign films, operas, ballet performances, and circuses will see a 5% tax, with an additional 3% on food and beverages at these venues. A 10% tax is slated for public parties at sports and social clubs.
Finance Minister Mohamed Maait assured parliament that these taxes would target luxury and nonessential goods, leaving low-income citizens unaffected. The tax reforms are projected to generate approximately 5 billion Egyptian pounds ($160 million) in revenues, helping to reduce the growing budget deficit caused by increased public spending. These funds will support social safety programs, pensions, and subsidies for necessities like fuel and bread.