There will not be any further amendments to Egypt’s income taxes, sources inside the Tax Authority have told Ahram Online.
Sources denied what newspaper El-Masry El-Youm had reported on new amendments to the tax law.
“After increasing income tax to 25 per cent on the high bracket, there aren't any other amendments,” a source inside the Tax Authority told Ahram Online on condition of anonymity.
Egypt’s ruling Supreme Council of the Armed Forces (SCAF) passed an increase on taxes on individual and corporate income to reach 25 per cent, up from 20 per cent, for annual incomes higher than LE10 million, effective in July.
Egypt currently applies a uniform tax rate of 20 per cent for annual incomes brackets of LE40,000 to LE10 million. A tax rate of 15 per cent is charged on annual income levels between LE20,000 and LE40,000.
Those making less than LE20,000 annually are taxed 10 per cent.
Mohamed Tarek, head of the high income taxpayers division in the Tax Authority told El-Masry El-Youm that the Ministry of Finance is not planning an exceptional or progressive tax on the rich. Tarek added that this decision protects and supports the private sector and prevents capital from fleeing the country.
Tarek also indicated that revenues from sales tax and stamp duty on advertisements has decreased on the back of turmoil caused by the January 25 uprising, but he didn’t specify the amount of the drop.
Earlier in October, news circulated that SCAF was to postpone application of a property tax from January 2012 to January 2013.
Egypt's minister of finance, Hazem El-Beblawi, told Al-Ahram that the one of the main reasons for the delay is to fix deficiencies in the tax law and help accommodate the social and economic needs of the Egyptian people.
News reports suggested Egypt’s Cabinet discussed amendments to be made to the property tax law on 21 September.