Keeping up with other nations, Egypt's government has introduced a new law on raising taxes for rich citizens. The country which recently experienced the overthrow of two presidents is now almost in a civil war. So it tries to take every opportunity to cut its burgeoning budget deficit. The lawmakers voted to hike the wealth tax rate to 5% for citizens with an income of over one million Egyptian pounds (approximately $142,000). Ahead of the legislation to be in force, it should be signed by the interim Egyptian President Adly Mansour. After this procedure, the wealthy Egyptians will be charged a higher levy. Compared to its European colleagues, Egypt's authorities stipulated a term for the law to be in force. As soon as economic figures stay stable, the current tax rate will be decreased. According to a special commission that developed the bill, the main problem for the African country's economy is a record deficit of its national budget that is of more than 14% of GDP. Solving this issue is the basic task for the government, which has already prepared plans on reduction of various subsidies which account for over 20% of government expenditures annually. However, in this case there is a risk of protest actions of the poor. The money received from the higher taxes are supposed to be directed to finance a social projects in education, healthcare, medicine, residential construction, and infrastructure development.