CAIRO: President Abdel Fatah al-Sisi issued a decree Tuesday to amend some provisions of the Income Tax Law and Stamp Duty Law, according to a statement from the presidency.
This decision comes amid efforts to revive Egypt’s limping economy, which faces “tough challenges that require united efforts to protect it and reinstate confidence in it,” according to the statement.
“This amendment is aimed at redistributing the burdens of fiscal and economic reform on the widest possible tax base, excluding low-income people,” the statement read.
Minister of Finance Hani Kadry previously announced he would amend the tax system by imposing progressive taxes, wealth taxes and real estate taxes as steps for covering the budget deficit and increasing Egypt’s tax revenues.
Sisi’s announcement comes shortly after Prime Minister Ibrahim Mahlab announced during a Monday interview with Al-Watan newspaper that the capital gains tax on stock market profits and dividends will be applied “very soon” and with “no amendments” according to an interview published Monday.
On May 28, the third day of the last presidential election, the Cabinet considered a 10 percent tax on annual stock market capital gains on individual investors, cash dividends and bonus shares.
The proposed tax elicited widespread criticism on grounds that it could reduce cash flow into the Egyptian stock exchange (EGX).
Earlier this month, former interim President Adly Mansour approved a 5 percent tax on annual incomes exceeding 1 million EGP ($142,000), effective for three years starting this year. The Ministry of Finance set the expected annual revenue from the 5 percent tax between 2 billion EGP to 3 billion EGP.