A dramatic U-turn by Egypt’s embattled president Mohammed Mursi over a proposed tax hike has raised serious questions about the decision-making process within the government, casting doubts over the administration’s competence and ability to craft a coherent economic policy. It has also brought into question the fate of a crucial International Monetary Fund (IMF) loan Egypt is awaiting, set to be ratified by the fund’s board next week.
Experts derided both the government’s unilateral decision to raise taxes at a time of political crisis and the president’s swift retraction of the measures in the face of public uproar.
Some feared the president’s volte-face indicated a desire to pass the Islamist-penned constitution first and then subsequently institute a tax hike. Others said his quick retraction undermined his leadership and exposed a lack of political maturity.