Egypt raises taxes on airplane tickets

Egypt has raised taxes on airplane tickets to LE150 from LE100 for commercial tickets and to LE400 from LE300 on first class tickets, representing around a 1 percent increase on the average ticket price, said minister of aviation Hossam Kamal.

The minister asserted that tax is imposed on all airline companies to protect competition.

The tax is imposed on international flights leaving from Egypt only. This excludes flights coming to Egypt and internal flights, he added.

The fixed sum tax on plane tickets was first imposed in 1978 under law 46.

The government has cut subsidies and introduced new taxes, including the property tax, as part of a fiscal reform plan that Egypt embarked on last year to stem a growing budget deficit. A value-added tax is also anticipated before the end of this year.