News

Egypt’s Stock Market Gains EGP 20.3 Billion After Suspension of Capital Gains Tax

Egypt’s Stock Market Gains EGP 20.3 Billion After Suspension of Capital Gains Tax

REUTERS/Mohamed Abd El Ghany
REUTERS/Mohamed Abd El Ghany

Egypt’s stock market has witnessed gains of EGP 14.9 million per second as the government announced a surprise suspension of tax imposed on the market’s capital gains for two years.

The strong rally came after several months of downturn due to a lack of understanding and clarity about new taxes imposed by Egypt’s government nearly a year ago, which placed a 10 percent tax on capital gains.

The suspension of the tax for two years resulted in the stock market closing with EGP 20.3 billion ($US 2.66 billion) in gains. Immediately after the announcement of the suspension, EGX 30 index rose by 3.3 percent to 8562.07, reported state media. By closing, EGX 30 had reached a 6.5 percent gain, rising to 8798.17.

Meanwhile, EGX 70 index rose by 7.47 percent while EGX 100 rose by 6.47 percent.

The capital gains tax had initially been imposed by President Abdel Fattah Al-Sisi as an attempt to boost government assets gained from tax. However, its imposition had led to turmoil in Egypt’s stock markets for several months.

Since the January 25 revolution in 2011, Egypt’s economy, once one of the fastest growing in the world, underwent significant turmoil. Foreign investments plunged from $US 13 billion in 2007-2008 to $US 2.2 billion after the revolution. Since then, Egypt’s economy has been on a slow path of recovery, recently revitalized by the Egyptian Economic Development Conference, held in Sharm El-Sheikh in March.

Egypt's First Free Breast Cancer Hospital
BBC Journalists Arrested in Qatar for Reporting on World Cup Labourers

Subscribe to our newsletter


News
@khairatmk

Mohamed Khairat is the Founder of Egyptian Streets.

More in News

Egyptian Government Opens Shelter for Women Victims of Violence in Giza

Egyptian StreetsDecember 13, 2019

Google Injects 1M USD Into Arabic Digital Skills Program, Improves Arabic Search

Aya NaderDecember 11, 2019

Egypt Approves Law to Grant Foreigners Egyptian Nationality Under Conditions of Investment

Egyptian StreetsDecember 11, 2019

Cairo University’s Anti-Violence Against Woman Unit Aiming to Create ‘Safe Environment for All’

Egyptian StreetsDecember 11, 2019

Google Maps Launches ‘Motorcycle Mode’ for Millions of Two-Wheel Drivers in Egypt

Aya NaderDecember 10, 2019

Egypt’s Sharm El Sheikh Airport Leads Africa’s Top Fastest Growing Airports

Egyptian StreetsDecember 9, 2019

Real Estate Mogul Samih Sawiris Acquires Thomas Cook Germany

Egyptian StreetsDecember 7, 2019

Egyptian Woman Becomes Country’s First Flight Attendant with Down Syndrome

Egyptian StreetsDecember 5, 2019