Egypt to consider VAT and income-tax reforms
Tuesday, 07 30 2019, Category: Economy, Country: Egypt
Egypt will form a committee to amend its value-added tax law and the country will also work to draft a new income tax law this fiscal year, Finance Minister Mohamed Maait said on Monday.
Maait, speaking to reporters, gave no details on what changes would be sought to either law.
The VAT law is part of a reform programme that was the basis for a $12bn, three-year loan agreed with the International Monetary Fund in 2016.
It broadened the tax base in a country where the government struggles to collect income tax because of a large informal economy and widespread avoidance.
Introduced at 13 per cent for a year from September 2016 then raised to 14 per cent, it replaced a sales tax that economists say was distorting the market.
Maait gave no details on the committee, including when it would be formed or what amendments will be sought.
A document seen by Reuters shows the government aims to review the general rate of its value-added tax in the 2019/20 fiscal year that began on July 1.
Source: Gulf Business