CAIRO: Minister of Finance Hani Qadry Demian announced Thursday that the recently approved real estate tax amendments will not impact low and medium-wage citizens as it expands the tax exemption base (to exempt larger categories of deserving Egyptians) and presents legal guarantees for tax payers, Mubasher reported Thursday.
“The new amendments state that properties whose rental value is less than 2400 EGP monthly needed for housing purposes will be exempted of paying real estate tax, while properties whose rental value is less than 1200 EGP per month and are used for commercial purposes will be exempted of paying taxes as well”.
“Besides the previously mentioned types of properties, Qadry unveiled that properties worth less than 2 million EGP used for family housing will be exempted from paying taxes,” he disclosed, adding that properties worth more than 2 million EGP will be subject to paying the tax even if used for housing. “Owners of these properties will only have to pay taxes on any value above 2 million EGP,” Qadry added.
“The government seeks through imposing this tax to collect 4 billion EGP annually in possible income,” Qadry said, pointing out that 25 percent of the collected sums will be directed to all governorates as to execute their developmental projects, while another 25 percent will be oriented for developing slums and the remaining 50 per cent will be sent to the public fund.
Qadry also praised the latest approved amendments which would surround added-sums after assessment, adding that the latest approved amendments defined a 30 percent maximum increase for housing units over the five-year assessment and a 45 percent maximum hike for commercial units over the same period, it reported.
In related news , an inside source at the Ministry of Finance told Mubasher Thursday that the ministry is currently working on defining the mechanisms and standards of applying real estate taxes, pointing out that the tax will be imposed on oil wells and other similar public and private properties like industrial and tourism enterprises , airports, ports, mines and quarries .
Intensive meetings between the Minister of Finance and ministers of civil aviation, poetroleum and transportation are scheduled to be held during the forthcoming period to set standards of counting real estate taxes on such properties along with defining ways of assessing such properties’ prices.
The presidency had approved Tuesday 19 Aug. new amendments in real estate taxes that were ratified by the Egyptian Cabinet in early July, Ahram gate reported .