EGYPT HIKES AIRLINE TAX
Posted on 10/13/2015 | About Egypt
Tourism down? Looking to increase visitation? Here’s the perfect solution. Slap a hefty tax increase on airline tickets. That’s what Egypt has done. The country’s aviation minister says airlines have begun applying a tax increase on all flights out of the country.
The tax increase, which went into effect on Friday, is part of President Abdel-Fattah el-Sissi's plan to shore up public finances after years of unrest following the 2011 uprising.
Aviation Minister Hossam Kamal says in a statement that the tax on business class tickets increased by a third to reach 400 Egyptian pounds ($67), while the tax on coach tickets increased by half to reach 150 Egyptian pounds ($25).
In an opinion piece published in The Wall Street Journal last week, el-Sissi said he intends to introduce a value-added tax regime to boost revenues. The former general has staked his legitimacy on stabilizing the country and reviving the economy.