Egypt’s Finance Ministry is recommending the implementation of a stamp duty on stock exchange transactions of 0.2 percent on both sellers and buyers, a senior ministry official told Reuters on Thursday.
The official said he expects the stamp duty to come into effect before May and generate revenue of 1-1.5 billion Egyptian pounds ($63 million to $94.5 million) in 2017/18.
“We will send the income tax law amendments in early March to parliament, and it will include imposing a stamp tax on bourse transactions of 4 pounds per 1,000, which will be 2 pounds per 1,000 on the seller and 2 pounds per 1,000 on the buyer,” the official said.
“We are targeting implementation of that tax before next May,” he added.
Stamp duty
Egypt imposed a stamp duty on buyers and sellers in May 2013, collecting more than 350 million Egyptian pounds ($18.77 million) in revenue before the levy was replaced in July 2014 by a 10 percent capital gains tax.
Egypt suspended the capital gains tax in May 2015 for two years, under pressure from investors. They said it was discouraging business just as Egypt was struggling to recover from a plunge in confidence after a 2011 uprising and subsequent political upheavals.
The Higher Investment Council last year extended the suspension of capital gains tax for three years, until 2020 as part of efforts to draw investors back.
More than 270 companies are listed on the Egyptian stock exchange and more than 500,000 investors are registered to trade there.
-
Egypt’s agricultural exports ripe for world markets after currency float
Egypt’s agricultural exporters are seeing a surge in demand and finding new foreign markets only months after the currency was floated, with ... Economy -
Egypt merges ministries as it pursues economic reforms
Egypt’s parliament on Tuesday approved a cabinet reshuffle that includes a merger of the ministries of investment and international cooperation, ... Middle East -
Egypt inflation rate hit 29.6 percent in January
Egypt’s annual inflation rate hit 29.6 percent in January, official figures showed on Saturday, three months after the government floated the ... Economy -
90% of cotton 'Made in Egypt' is fake, Cotton Association says
Egypt's most famous export, the silky soft cotton prized by makers of luxury bedding and clothing, has become so scarce as production has fallen that ... Business