CAIRO: The government is set to draft a number of tax exemptions for the national projects that are scheduled to be executed in the upcoming period, with officials arguing that such exemptions fall within the Ministry of Finance’s approved amendments to the tax laws.
“National projects for developing the Suez Canal axis along with Sinai developmental projects will be exempt from paying taxes for three years under the Ministry of Finance’s amendments to the tax laws,” a government official told the Al Mal daily business newspaper on Sunday.
The value of the tax exemptions that will be covered by the state will be defined after the general scheme for the Suez Canal axis is finished, along with a clearer picture of future projects in the Sinai, the official added, saying also that Hani Kadry, the Minister of Finance, expressed the ministry’s keenness to issue a number of legislative amendments to income tax laws as well in the upcoming period.
Kadry reportedly stated during a spring meeting for the International Monetary Fund and the World Bank two weeks ago that the Ministry of Finance aims, through the applying of legislative amendments to income taxes, to execute a number of necessary financial reforms to the Egyptian economy to improve the subsidy system, restore trust and to achieve financial and economic stability, Masrawy reported.
Such legislative amendments would include widening the tax base, imposing a value-added tax, and rationing the subsidy for petroleum products, Kadry reportedly said.
The value-added tax is an accumulated tax imposed on the difference between the cost and the selling price of goods, which is considered an indirect tax that will increase the net receipt of taxes, he said.
He also said amendments to the tax law will prevent tax evasion and increase the financial receipt of taxes.
The Ministry of Finance will not resort to aid to meet citizens’ growing demands, Kadry also said, adding that the government will depend on its domestic revenues and will impose taxes on banking deposits and Egyptian Exchange shares, Vetogate reported.