The International Monetary Fund criticized Egypt's decision to postpone the imposition of capital gains tax on the stock, as this decision means that the cost of covering the budget deficit would be borne by “Least able to so”.
In response to a letter sent by site editor Bloomberg Economic، قال كريس جارفيس، رئيس اللجنة المسؤولة عن إقراض مصر في صندوق النقد الدولي، “We are disappointed by the postponement of the tax”He continued, “This tax was fair, was to raise revenue for the state”.
The Egyptian stock exchange index of shares rose more level in two years on 18 May, after the decision to postpone tax 10% Capital gains for two years, which Egyptian officials say, the government formed after the military coup, that would make the stock market more competitive, and the stock index has risen by 1.5%, as it closed at its highest level since last March.
Although government rhetoric seems as if struggling to collect more money from the rich Egyptians, in an attempt to bridge the inability of one of the largest budget deficit ratios in the Middle East, but the government in March, the abolition of taxes on wages 5% Borne by the highest paid after 9 Months of its entry into force, as was the increase in cut “The highest rate” Income tax applied in the 2013.
Egypt had acceded to the membership of the International Monetary Fund in December 1945, and the share of the Fund about Egypt 1.5 مليار دولار، وقبل الثورة المصرية لم تلجأ البلاد إلي صندوق النقد الدولي سوى ثلاث مرات فقط؛ مرة في عهد الرئيس الراحل أنور السادات، ومرتين في عهد الديكتاتور المخلوع حسني مبارك.
Egypt resorted to borrow abroad for the first time in its history in the era of the late President Anwar Sadat, as agreed with the International Monetary Fund in 1977 And 1978 on loan 185.7 Million; in order to solve the problem of overdue external payments and increase inflation.
And Cairo had reached agreement on the World Bank loan twice since the overthrow of dictator Hosni Mubarak in 2011, but it later withdrew its applications.
Following the military coup in July 2013, negating the need for Egypt to the International Monetary Fund; has pledged to Saudi Arabia, Kuwait and the UAE at the time of sending economic aid 12 USD billion, allowing the specter of the crisis that was looming on the horizon, and contributed to this aid in the installation of foreign currency reserves after declining to a large extent, eased the impact of the widening current account deficit, and promoted for some time the social balance in the country, by allowing the government to cover subsidies basic, along with the amount of 12 billion dollars, pledged to provide Saudi Arabia, UAE 5.8 An additional billion dollars.
Some Western observers forecast, the military President Abdel Fattah al-Sisi, indicating he would prefer to strengthen the army's role in the economy, and a return to nationalization policies followed by Abdel Nasser in the fifties, which means that aside from dealing with the International Monetary Fund, and others from Western creditors.
However, the nature of the economic policies adopted by Sisi since formally taking office in June, and virtually since July 2013, led the private sector to penetrate the army, strengthening his control over the economy in the context of neo-liberal policies of the ruling.
Thanks in inflation and economic empire of the Egyptian army to 1979, and the signing of the Camp David Accords; and that since the conclusion of the army began to invest in everything in the country, from agriculture, to roads, bridges, real estate investment and electronic industries building, passing through plants milk, chicken, breeding farms calves and cows, vegetables and fruit farms, canning factories, fish farms.
Since the military coup Sisi has cut energy subsidies, as the value of the Egyptian pound fell by almost 6% Against the dollar.