Proposed tax on luxury goods to contribute to “Innovators’ Fund”

CAIRO- 7 August 2017: The House of Representatives’ Economic Affairs Committee considers imposing a tax on luxury goods, MP Tarek Hassanein said Monday.

The purpose of the tax will be to raise money for the “Innovators’ Fund” that was launched Sunday by President Abdel Fatah al-Sisi, Hassanein said in an official statement.

With contributions by the state, civil society and businessman, the fund was established to support and nourish gifted youth innovators.

Hassanein added that the tax will be levied on owners of villas in new cities, airplane tickets in the first two classes and business class.

These tax measures are in hopes to collect LE 500 million ($28.13 million) annually for the fund, the MP said.

Hassanein added that the Federation of Egyptian Industries will be asked to make a financial contribution in favor of the fund, additionally he will present a proposal to the House of Representatives in the new session asking that members contribute 10% of their monthly bonus to the fund.