The recent amendment in the income tax law to raise the upper limit for the tax exemption income bracket is set to lower tax revenues by LE2.5 billion ($320 million), according to a finance ministry press release.
The amendments which were ratified by President Abdel-Fattah al-Sisi on Thursday raised the upper limit of the first income bracket — which is exempt from income tax — to stand at LE6,500 per year, up from LE5000.
This raises the current upper limit for tax exemption to LE13,500 annually from LE12,000, as the income tax law stipulates that a maximum limit of LE7,000 in annual income is added to the exemption limit.
The amendments also included lowering the income tax ceiling from 22.5 percent compared to 25 percent previously as well as ending a temporary five percent wealth tax imposed on those earning above LE1 million annually.
