Egypt to end tax exemptions on bonds

Faced with rising public discontent, the Egyptian government increased the salaries for 6 million government employees.

The government will end tax exemptions on government bonds as part of a series of measures to find the revenue to pay for a 30 percent increase in public sector wages, Finance Minister Youssef Boutros-Ghali said Sunday. Faced with rising public discontent over stagnant wages and soaring food prices, the Egyptian government increased the salaries for 6 million government employees. It then reduced fuel subsidies and tax breaks for industries to pay for the measure. Ghali said the measure would be in the annual budget starting July 1 and the government might also tax treasury bills.