News

Egypt’s Sisi Ratifies Value Added Tax, Will Come to Force in 30 Days

Egypt’s Sisi Ratifies Value Added Tax, Will Come to Force in 30 Days

Egyptian President Abdel Fattah el-Sisi answers questions during an interview, Saturday, Sept. 26, 2015, in New York. (AP Photo/Julie Jacobson)
Egyptian President Abdel Fattah el-Sisi answers questions during an interview, Saturday, Sept. 26, 2015, in New York. (AP Photo/Julie Jacobson)

Egypt’s President Abdel Fattah al-Sisi ratified the Value-Added Tax (VAT) after it had been approved by Parliament last August, the official gazette reported on Thursday.

The Ministry of Finance is due to put the long-awaited law into action within one month, after issuing its bylaws.

The House of Representatives had set the VAT rate at 13 percent for the year 2016-17 instead of the government’s initial proposal of 14 per cent. However, the 14 percent rate will be imposed next year.

The new law also imposes a penalty between three and five years on tax evaders and a fine to between EGP 5,000 and EGP 50,000.

The VAT is expected to replace the current sales tax and broaden the tax base by subjecting all services to the tax while maintaining the principle of exempting basic goods and services that affect the poor, according to a cabinet statement in May.

The VAT is part of the government’s reform programme, which includes cuts to expensive energy subsidies and the introduction of other new tax measures, in an attempt to cut spending and meet conditions for a $US 12 billion three-year loan programme from the International Monetary Fund.

The loan is still subject to the final approval of the IMF executive committee.

Content by Aswat Masriya

Sherif Osman Wins Egypt's First Gold Medal at Rio Paralympic Games
Egyptian MP Referred to Ethics Committee for Supporting FGM Due to 'Sexually Weak Men'

Subscribe to our newsletter


News
@AswatMasriya_En

Aswat Masriya is a Thomson Reuters Foundation-sponsored website that covers Egypt's transition to democracy. en.aswatmasriya.com

More in News

30 Policemen Killed in a Shootout in Egypt’s Western Desert

Egyptian StreetsOctober 20, 2017

Greek Pianist Plays Cavafy Poems as Part of the 2017 Cavafia in Egypt

Maydaa Abo El NadarOctober 20, 2017

With New Power Plants, Egypt’s Solar Investments Surge in 2017

Egyptian StreetsOctober 19, 2017

Egypt Approves First Major Draft Traffic Law in 40 Years

Egyptian StreetsOctober 19, 2017

‘The Show Goes On’: Theatrical Performances Feature Stories of Women in Egypt

Engy AdhamOctober 18, 2017

Climate Change Triggered Social Unrest in Ancient Egypt: Study

Egyptian StreetsOctober 18, 2017

13 Egyptian Businesses Make Forbes’ Top List of Arab Startups

Egyptian StreetsOctober 17, 2017

About 276 Killed in Deadly Truck Bombings in Mogadishu, Somalia

Egyptian StreetsOctober 17, 2017
Egyptian Streets is an independent, young, and grass roots news media organization aimed at providing readers with an alternate depiction of events that occur on Egyptian and Middle Eastern streets, and to establish an engaging social platform for readers to discover and discuss the various issues that impact the region.

© 2017 Egyptian Streets. All Rights Reserved.