Despite poverty and the price increase, it increased by 465% .. Why does Sisi chew the Egyptians with excessive taxes ?!


The philosophy of levy obsession with the regime of dictator Abdel Fattah el-Sisi; In essence, tax policy is supposed to be based on the establishment of social justice There is no tax without profit, and no fees without services that benefit the payer; Consequently, the state deducts a portion of the profits of the rich and those with high incomes to redistribute what it has deducted to the poor, marginalized and low-income classes; On this basis, part of the tax revenue is directed to public services directed at members of society, such as education and health, and another part of the tax revenue is directed at improving the living conditions of the poor in the form of in-kind or financial “support”. Part of the tax revenue is directed to direct investments aimed at creating production-based development. On this basis, the philosophy of taxation was built within economic policy.

Tax policies in Egypt are different, and the situation is upside down and contradicts this philosophy. Where the government resorts to taxation, as a tool to resolve its failure in managing the economic file.It charges exorbitant fees to citizens in exchange for services, or its dealings with the official state agencies and its various interests; The Egyptian case thus represents a clear embodiment of the adoption of a tax policy characterized by unfairness and the continuation of class discrimination at the expense of the rich at the expense of the poor, and sometimes reaches the point of political committing of bandits, where the tax policy and service fees change from an instrument to establish justice into a weapon for its violation.

(465% increase in tax rate)

According to the financial statement of the new budget, the amount of tax has increased by 465% since the military coup in July 2013 AD to date; Where the tax revenue target was one trillion and 168 billion and 795 million pounds (about 33 billion dollars), compared to 251 billion and 119 million in June 2013.

According to the draft budget, the government expects a real tax revenue of 946 billion and 375 million pounds in the year 2021-2022, and an increase of about 222 billion and 420 million pounds in the year 2022-2023, a growth rate of 23.5 %.

The government expected an increase in public tax revenue from £ 472 billion and £ 758 million in the years 2021-2022 to £ 589 billion and £ 508 million in the years 2022-2023, an increase of £ 116 billion and £ 750 million, and the value added tax added from 385 billion and 780 million pounds to 477 billion pounds And 592 million pounds, an increase of 91 billion and 722 million pounds.

It also expected – despite import restrictions – an increase in customs tax revenue of 41 billion and 698 million pounds to 46 billion and 14 million pounds, an increase of 4 billion and 316 million pounds, and the remaining tax of 46 billion and 49 million pounds to 55 billion and 682 million pounds, an increase of 9 and 633 billion one million pounds.

The volume of expected revenue in 2022-2023 was approximately £ 1.517 billion, of which £ 235 billion and £ 28 million are non-tax revenue, compared to £ 2 trillion and £ 70 billion for expenditure, with an expected cash deficit of around £ 553 billion, and a total deficit of £ 558 billion, according to budget figures. .

systematic impoverishment

According to political analyst Maged Mandour, in his analysis published by the “open democracy” website, in October “2020”, the regime of tyrant Abdel Fattah Al-Sisi is waging a relentless war against the poor in Egyptian society, emphasizing that the financial and economic policies adopted by the Sisi regime cause a worsening of rates Poverty, and the hasty transfer of wealth from the lower and middle classes to the government and business and financial elites, with the expectation that it will be disastrous results will lead.

In addition to the authoritarian nature of the regime, according to Mandour, the international support it receives in the form of financial flows and loans contributes to strengthening its efforts to enrich the elite class in business and military institutions at the expense of citizens. . He adds that between 2011 and 2019, the Sisi government received $ 92 billion in financial support from its regional allies, and continues to borrow large sums of money from international institutions. These funds enable the government to implement major projects and maintain a regressive tax system that places the greatest burden on the poor rather than the rich.

Mandour attributes the reasons for the increase in poverty rates in Egypt to the regime’s adoption of a package of financial and economic policies aimed at accelerating the transfer of wealth from the lower and middle classes to the business elite, led by the military establishment and its leaders, who monopolize and control the joints of economic activity with its wide privileges and influence.

This policy is based on several pillars:

The first is that the government relies heavily on loans, rather than taxes, to finance its operations and major infrastructure projects. Tax revenue is used disproportionately to pay off loans and interest, leading to a transfer of wealth from the lower and middle classes to the system’s creditors, both external and internal.

Second, the government continues to reduce social subsidies and spending.

Third, the regressive taxation that places the tax burden on the middle and lower classes continues. (Refer to the non-adoption of the progressive tax philosophy, which determines the value of the tax based on the size of the profits and profits according to the formula (the tax increases as the income increases and decreases as the income decreases). time, the government continues to work on the implementation of major infrastructure projects led by the military, It is a tool for obtaining public funds, rather than a tool for implementing social spending and poverty reduction programs. in turn, military ownership allows businesses to flourish, which contributes to strengthening the influence of the military and its patronage network.This external support also protects the military from public scrutiny.This is accompanied by the increasing dependence on taxes as a source of government revenue.

On the repercussions of the Sisi military regime’s adoption of these financial and economic policies on the social and political conditions, Mandour expects that this approach will lead to serious long-term effects that go beyond the increasing poverty and social hardship experienced by the average citizen. suffered, as it is inevitable that this system will become more oppressive and authoritarian as it continues to enforce its strict policies. This in turn will fuel the rise of violent resistance against the state. He concludes that even if this resistance does not crystallize within the framework of a coherent political movement, the level of social violence should intensify, leading to destabilizing repercussions in the long run. In addition, the expansion of military-owned businesses and companies is increasing pressure on the private-sector economy, as it strives to compete with the military giant. This will have long-term structural effects on the economy and the political system, effects that are difficult to reverse and are likely to continue beyond Sisi and his regime.

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