Catastrophic repercussions of imposing taxes and fees and expanding debt – Freedom and Justice Gate

A research paper entitled “Why does the coup d’état Sisi impose new taxes at this time?” warned It was published by Al-Share` Al-Siyasi website from the catastrophic repercussions on Egyptian society, most notably the increase in rates of mental illness and depression, the erosion of belonging to society and the state, and the spread of unprecedented rates of social diseases such as malice, hatred and envy.
She added: Poverty and unemployment rates will increase, which will automatically lead to increased levels of crimes such as murder, theft, bribery, banditry, kidnapping of women and children, and trafficking in human organs.
And she continued, the rates of behavioral and moral deviation also rise, and it is easy to fall into the clutches of prostitution and sex networks, and the adoption of illegal and immoral ways to increase income.
And she added, the regime’s policies will lead to a steady increase in the level of drug trafficking, until it reached all the streets of the republic through the trafficking networks that grew and expanded in a frightening manner, as many found in drug trafficking a way to achieve great gains without effort or hardship in light of the long and intended inaction of by the state security institutions.
The paper warned of a sharp decline in the nutritional health of the general poor, an increase in malnutrition, osteoporosis and anemia, which affects the health of expectant mothers and affects the fetus, as well as the poor educational attainment of the children of the poor, and the decline in the health level of those working in craft, agricultural and commercial activities.

admit failure
The paper said, “The imposition of more fees and taxes is an acknowledgment by the regime of the failure of the so-called economic reform program that Sisi has adopted with the IMF since November 2016, when Sisi borrowed $12 billion, and with the failure of the program continuing, the regime was forced to conclude a second agreement with the Fund, which granted Sisi, another 8 billion, bringing Egypt’s debts to the fund to 20 billion dollars.
She explained that the signs of failure are that the economy in Egypt is still rentier and has not entered the production stage, and exports have not risen to the way the regime’s media machine marketed to it during the agreement with the Fund.
As for the accompanying sign, it is the expansion of debt on the one hand and the imposition of more fees and taxes on the other.
And it considered that more taxes are proof of the failure of the system to properly manage the state’s resources, and it also indicates the absence of any solutions or ideas for developing the state’s resources.
She pointed out that fees and taxes are easy, short-term solutions to the coup to burden the citizens, and the fall of millions more from the middle class below the poverty line.

The consolidation of social differences
The paper added that taxes and fees prove perpetuating injustice and lack of social justice; This is also proof that the government relied, in financing the 2021/2022 budget, on indirect taxes that increase the burden on the poor, and represent 53.4% ​​of tax revenues, and it continues to implement tax exemption policies for investors and businessmen, while indirect taxes and fees increase continuously. On the poor, despite the burden of indirect taxes in the budget, which amounts to 524.5 billion pounds, and includes 23.2 billion pounds in stamp taxes other than 2.7 stamp taxes on wages and salaries, and 17 billion resource development fees other than value-added tax and international trade tax, which confirms that the government continues in its policies Taxation, which expands the imposition of taxes and fees on consumption, which affects the poor and low-income and increases their burdens.
And that during 2021 AD, the regime enacted several laws imposing dozens of taxes on citizens, including:
Law No. 1 of 2021 amending some provisions of the Traffic Law, which imposed 20 pounds on motorcycles and a tax on private cars ranging between 60 and 350 pounds.

Law No. 4 of 2021, which imposed an additional fee of 5 pounds on a number of services, including tickets to attend sports matches, concerts and musical festivals if the ticket value is 50 pounds or more, requests to join military and police colleges and institutes, and requests to reserve a plot of land or a residential or administrative unit Of the lands or units provided by the state in new urban communities, and requests to participate in clubs and renew annual membership in them, in addition to increasing the fees for obtaining birth certificates and the criminal status sheet, and many of the Ministry of Interior’s services in traffic and passports, which affected millions of citizens.

Amending the Resource Development Law included imposing a fee on all types of gasoline at 30 piasters for every liter sold, and for diesel at 25 piasters for every liter sold, and imposing a new fee on mobile phones, its parts, and all its accessories at 5% of its value in addition to the value tax. The value of traffic fines has also been raised, and 47 violations have been identified, ranging in value from 200 to 3000 pounds.

double collecting

The paper revealed that the coup is reluctant to pursue the collection of tax arrears and tax evasion, which can provide an outcome equivalent to all tax revenues; Its size ranges between 400 and 900 billion pounds, and is equivalent to the total direct and indirect taxes collected.
She revealed that this is to collect multiple benefits, as taxes, fees and stamps of various kinds, especially the value-added tax, are the largest resource for the state treasury. Of the total expected state revenues, 1.3 trillion pounds, or about 83 billion dollars.
She explained that the state’s tax revenues have increased sharply over the past few years, especially after the liberalization of the pound exchange rate at the end of 2016. It rose from about 251 billion pounds in 2013 to 983 billion pounds in 2021, meaning that it has doubled at least 4 times since that date. .

Effective solutions

The paper revealed that the coup dispenses with the most effective practical solutions, namely; Develop urgent plans to increase agricultural and industrial production and increase state exports so that job opportunities are provided for unemployed youth on the one hand, and hard currency on the other hand.
She added that the coup deals with corruption with the logic of media distortion and not with the policy of eradication, as cutting corruption is the beginning of the path towards saving hundreds of billions that are looted annually.
She indicated that tax exemptions for investors and businessmen should be stopped, with progressive taxes on incomes of up to 45% in the upper strata, as is the case in most countries of the world, as well as imposing a wealth tax on those whose income exceeds 100 million pounds annually, and finally imposing taxes on Stock speculation.

Source: بوابة الحرية والعدالة by

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