CAIRO: The expected total increase in tax revenues is estimated to be 10 billion EGP after the new adopted amendments to the taxation system, according to head of the Income Tax Authority Mustafa Abdel Kader to Al-Ahram Monday.
Abdel Kader noted in his statements that about 3 to 3.5 billion EGP of the total value is expected to increase due to the additional 5 percent imposed on citizens whose annual income exceeds 1 million EGP.
In June 2014, former interim President Adly Mansour approved a 5 percent tax increase on annual incomes exceeding 1 million EGP ($142,000), effective for three years starting this year. The Ministry of Finance expected the annual revenue from the 5 percent increase to be between 2 billion EGP to 3 billion EGP.
A number of amendments were placed during the last couple of weeks regarding the Income Tax Law amid efforts to revive Egypt’s limping economy. The amendments impose a 10 percent tax on the net profit of every portfolio that has more than 150,000 EGP at the end of every year.
“This amendment is aimed at redistributing the burdens of fiscal and economic reform on the widest possible tax base, excluding low-income citizens,” a presidential statement read.
On May 28, the third day of the last presidential election, the Cabinet considered a 10 percent tax on annual stock market capital gains of individual investors, cash dividends and bonus shares.
Additional Reporting by Yasmine Samra