Egyptian Government Passes Bill To Raise Fuel, Cigarette Prices

Cairo, Egypt (AHN) - The Egyptian government has passed a bill to raise taxes and fuel prices only days after President Hosni Mubarak proposed a 30 percent salary increase for government employees. The move comes as Egypt is facing its worst social crisis over rising prices since Anwar El Sadat was president.

Under the proposal, gasoline prices will rise by as much as 50 percent. Natural gas will increase 58 percent. Smokers will be hit as well with a 10 percent rise in the cost of a pack of cigarettes.

Opposition members of Parliament protested the measure that looks to raise over $3 billion dollars to cover the salary increases.

Egyptians are frustrated that the government has deceived the population. One café employee told AHN Media Corporation that Mubarak announced the salary raises in order to quell a general strike called for on May 4, only to then burden Egyptians once more.

"We will know fully tomorrow what the prices are, but it doesn't matter," Yehia said. He added that it is "another proof that the Egyptian government is not really supporting the majority of the people."

The price hikes will also hit car owners with higher licensing fees. It also ends tax breaks for certain heavy industries, including those companies in special economic incentive zones.

Prime Minister Ahmed Nazif told reporters that the move "will not put any burden on the low income."