• 00:56
  • Friday ,16 December 2016
العربية

Taxes and Economic Growth

Magdy Malak

Article Of The Day

21:12

Sunday ,18 December 2016

Taxes and Economic Growth

Egyptians have been asking the same question for a long time now. This question is: why can't the lower class feel or see any improvements despite the economic reform that all governments have been proclaiming to adopt to improve poverty and the middle class.

 

I can assure you, that Egyptians will never feel any imporvement either short term or long term if economic reforms are not adopted, and fair tax systems not imposed. It is widely known that the exact same taxes are collected from rich people, as they are collected from the poor and middle classes. However, this should not be the same percentage, because it is only making the poor more poor, and the middle class move towards being poor as well.  

 
Having said that, we can see that the Egyptian tax system is now based on an unfair tax system. We can see that the most heavily taxed people are the government employees and the public sector employees as well. 
 
 
At the same time, we can see that the richest people pay the same percentage as the poor people. Furthermore, they try to create their own ways to escape and report unreal facts about their profits so they can pay less taxes.
 
 
In conclusion, I want to advise that the only way the government will see a real change in Egyptian life, they will have to adopt a different approach to the their tax system.