Morsi continues to panic
President Mohamed Morsy has decided to suspend wide-ranging changes to the country's tax laws that had been signed earlier this week but just came to light Sunday, calling for "societal dialogue" and further consultation before implementing them.
In an announcement early Monday morning, Morsy said the taxes would amount to an "additional burden" on the average citizen.
"The president of the republic feels the pulse of the Egyptian street, and he realizes how much the citizen is bearing and struggling from his burdens in this difficult economic period," the statement said, according to the website of the state-owned newspaper Al-Ahram.
This planned increase in government revenue is an important part of the IMF agreement signed by Egypt. Suddenly, after months of negotiations in which there was no "societal dialogue" at all, Morsi decides that it won't do? The main measures were going to be an increase in top-level income tax rates and a 1% on sales tax which would have been felt more widely. The excise tax increase on things like cigarettes have happened annually for years.
There's a confident president for you.