Cairo – Mubasher: The Egyptian cabinet rebutted on Friday claims that the government plans to raise the prices of petrol, diesel, or other petroleum products after adopting the value-added tax (VAT).

"The VAT act does not include any trigger for hiking the prices of gasoline and diesel", said the cabinet in a statement.

Over the past two days, Egyptian cities suffered from a shortage of gasoline and diesel amid talks about the government's intention to raise the prices after the VAT law.

Earlier, the House of Representatives approved adopting the Value Added Tax (VAT) Act at 13% rather than the 14% rate recommended by the government, but it will rise to 14% in the upcoming fiscal year.

The government is likely to raise EGP 32 billion from the VAT law which will enter into force next October, according to Deputy Finance Minister Amr Al-Mounir.