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Row in Egypt after official says government imposes income tax on arrested drug dealers, prostitutes

A tax official in Egypt has recently raised controversy when stating that the government is imposing an income tax on all drug traffickers, prostitutes and arms traders who are arrested.

A man counts Egyptian pounds at currency exchange shop in downtown Cairo on November 3, 2016. - Egypt floated the country's pound as part of a raft of reforms, after a dollar crunch and exorbitant black market trade threatened to grind some imports to a halt. (Photo by KHALED DESOUKI / AFP) (Photo by KHALED DESOUKI/AFP via Getty Images)
A man counts Egyptian pounds at a currency exchange shop in downtown Cairo, Egypt, Nov. 3, 2016. — KHALED DESOUKI/AFP via Getty Images

A row has been triggered this week in Egypt after a senior tax authority official said that the government imposes an income tax on drug trafficking, arms trade and prostitution if law violators have been arrested.

Some said that it is an indication that the government recognizes these illegal practices, but the official has denied that, saying that collecting taxes from those people is only a commitment to imposing taxes on anyone who is engaged in any such activities.

On July 29, Saeed Fouad, head of the central administration in the office of the head of the Tax Authority, said that drug dealers, illegal arms traders and prostitutes are subject to income tax if they get arrested.

“We deal with them like any tax financiers even if their activities are illegal,” Fouad said in TV statements. He added that if the drug dealer confesses that he has been practicing this activity for a specified period of time, a tax will be applied on him for that period.

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