The Value-added tax (VAT) rate has been set at 14%, below an average global rate of 15-18%, and compared to a previously reported flat rate of 10%, according to the Minister of Finance Amr El-Garhy. The government expects to raise tax revenues by around EGP25-30bn upon the implementation of the new tax, the Minister stated. The VAT may lead to price inflation ranging between 0.5% for low-income brackets and up to 2.3% for the higher brackets, the Minister said, refuting reports on fuel price hikes and additional tax on cars. Minister also reiterated that the new tax would replace the currently applied sales tax, and that production direct and indirect inputs will be deducted from the new tax bill. Prices of cigarettes and tobacco are being discussed with companies to reach a compromise, he added. (Al Ahram Online)