Egypt plan to end tax exemptions on govt bonds: minister

CAIRO, Egypt: Egyptian Finance Minister Youssef Boutros-Ghali says his government will end tax exemptions on government bonds in part of a series of measures to find the revenue to pay for a 30 percent increase in public sector wages.

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 may also tax treasury bills.

In Sunday's press conference, Ghali also said Egypt plans a US$1 billion (€650 million) Eurobond in July.

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