MP Badrawi says Egypt's economic situation is difficult

Egyptian MP Mohamed Badrawi, secretary of the industry and energy committee in Parliament, said that the country's economic situation is difficult as a result of the decline in economic resources, such as tourism and remittances of expatriates which are the most important resources of foreign currency, as well as the Suez Canal revenues.

He added that he proposed a draft law to establish a bank for expatriates with a capital of $2bn to solve the shortage of foreign currency crisis. He added that the Industry and Energy Committee is preparing a strategy to send it to the Economic Committee. 

The suggested bank would have special regulations, with several branches all over the world so that it can deal with all the Arab and foreign currencies. The bank would also provide dollar accounts for Egyptian expatriates and provides certificates and special features to make the expatriate benefit from the bank.

Badrawi suggested to launch a fund for the stalled factories and the state will finance this fund to reopen the closed factories, while the prime minister will not intervene in the fund.

Badrawi revealed that he demanded to impose a luxury tax of EGP 200-300 per month on the owners of villas and palaces, noting that the first phase of the tax would be imposed in El-Tagamu El Khames, the 6th of October, Garden City, Zamalek and the Northern Coast and some other areas. He added the tax would be paid with gas and electricity bills in order to achieve social peace and justice. The proceeds of that tax are expected to reach EGP 3bn annually. 

Badrawi also demanded to impose development fee for three years on vehicles licensing of EGP 1,000 for lorries and EGP 2,000 for private cars, noting that the expected proceeds will reach EGP 4bn from lorries and EGP 5bn from private cars.

Badrawi concluded that all the aforementioned suggestions can provide EGP 383bn annually which can be allocated to develop education and provide health insurance for all Egyptians. These measures can achieve social justice for the Egyptian people, he added.

Source : Arab News