Airlines begin applying tax hike on flights departing Egypt

AP News
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Posted: Oct 09, 2015 8:29 AM

CAIRO (AP) — Egypt'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 ($51), while the tax on coach tickets increased by half to reach 150 Egyptian pounds ($19).

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.