The Ministry of Finance has lowered its forecast of inflationary impact of the value-added tax (VAT) to 0.8-1.3% from an earlier 1.5-2.5%, Deputy Minister and Head of Macro Fiscal Unit Yasser Sobhy said. The latest amendments to the draft law include more exemptions – food (41% of the CPI basket), transportation, education, health - which will lessen the expected inflationary pressures further. The government expects state revenue to grow 1.1% of GDP as a result of implementing VAT and a new real estate tax law, Deputy Minister of Finance for Tax Policies Amr Monaiery said. Meanwhile, the Ministry awaits the State Council revision of the VAT draft law, which will then be handed in to the parliament for ratification. (Al Mal)