Egypt cabinet dismisses reports of raising VAT, income tax this fiscal year

Ahram Online , Wednesday 18 Oct 2017

Egypt's Value Added Tax currently stands at 14 %

The Egyptian cabinet's Information and Decision Support Center (IDSC) dismissed on Wednesday news reports that the government is planning to raise the Value Added Tax (VAT) and the income tax during the current fiscal year, which ends in July 2018.

The Ministry of Finance said that Egypt is enjoying a strong financial position due to the implementation of new laws and measures aimed at facilitating investment in the country, especially in tourism, agriculture and technology.

The ministry also said that Egypt is planning to issue $3 billion in bonds in early 2018.

Egypt has been increasing taxes and cutting subsidies to narrow its budget deficit as part of economic reforms tied to a $12 billion loan from the International Monetary Fund (IMF) aimed at boosting the economy.

Prior to signing the IMF loan deal in November 2016, Egypt imposed a 14 percent VAT on nonessential goods.

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