CAIRO:, Head of the Egyptian Tax Authority (ETA) Mostafa Abdel Kader announced Thursday that the wealth tax will not only be a cash tax but it will be an in-kind tax, Youm7 reported Thursday.
The wealth tax will be imposed on people and businessmen who earn more than one million EGP ($140,000) yearly.
ETA is currently drafting the wealth tax form to submit to the Cabinet to be ratified, Abdel kader said during the E-Payment for Taxes conference, regulated by the E-Finance Company for electronic payment.
Minister of Finance Hani Kadry announced March 12 that they discussed applying the wealth tax on businessmen by 5 percent of wealth value for two successive years, according to Al-Bawabh News on Wednesday.
The wealth tax is an old proposal from businessmen themselves to the former Cabinet headed by former Prime Minister Hazem Al-Beblawy, Kadry said.
The under-discussion tax will boost Egypt’s budget, provide a qualified cadres, and increase production.
“The so-called wealth tax will not be on wealth or rich men, but it will be an exceptional and temporary tax for three years,” Abdel Kader said. ETA did not define whether the tax will be on companies and individuals or individuals only.
Adel Kader said the wealth-tax will be additional 5 percent over the usual 25 percent tax for people who earn more than one million EGP annually.
The new wealth tax will be used for state infrastructure projects, such as schools and other projects for charitable causes, Abdel kader said and that the wealth tax draft is not stated in the ETA’s regulations.
Economic expert Hamdy Abdel Azeem said the will-imposed exceptional tax was applied by 5 percent during late President Anwar Sadat’s regime as a Jihad tax, Al-Bawabh news said March 17.
The tax was applied not only on businessmen but also on transportation tickets, universities, and salaries.
The wealth tax will be exceptional tax, independent from the common tax, and imposed to help Egypt oversee its crisis, Abdel Azeem said.
Additional reporting by Mona Diaa.