CAIRO, May 19 (KUNA) -- An Egyptian minister said on Monday that no taxes will be imposed on capital profits, saying that would harm the Egyptian economy.
Egyptian Investment Minister Mahmoud Mohieldin told "Al-Alam Al-Yawm" economic paper that 58 percent of traders at the Egyptian bourse are small investors, emphasizing that no new policies that would concern local and foreign investors would be implemented.
Mohieldin said that the Egyptian government aims to reduce the deficit of its public budget by three or four percent in 2010 through making real growth.
He said it is unlikely that inflation would increase after the procedures taken by the Egyptian government recently, adding that inflation is expected to decrease between 10 to 12 percent.
The minister described the local and international reports that expected the increase of inflation by 20 percent as unrealistic and exaggerating.
He pointed out that Egyptian bourse's main index increased by four percent of Sunday after it lost 11.92 percent last week as a result to rumors on imposing taxes on capital profits.
The Egyptian parliament agreed on economic procedures proposed by the government to save part of the country's budget and use it for social allowances.
The procedures also included raising the prices of some petroleum derivatives, cigarettes, and car licenses, and canceling tax exemptions of private schools and universities and factories in free trade zones. (end) rg.ris KUNA 191021 May 08NNNN