File photo: Egyptian parliament (Photo: Reuters)
Egypt's parliament has approved a new law that waives fines imposed for the late payment of tax dues, which should alleviate burdens on taxpayers and curb the impact of COVID-19, Minister of Finance Mohamed Maait said on Tuesday.
Maait said in a statement that the new law supports taxpayers and helps the state accelerate the collection of delayed tax dues, which boosts its ability to introduce public services amid the ongoing crisis.
“The law is one of the tools adopted by the government to tackle the social and economic impacts of the pandemic, as it encourages taxpayers to pay their delayed tax dues including income tax, value added tax (VAT), stamp duty tax, real-estate tax, development fees, custom tax, social insurance subscriptions and other state dues,” Maait illustrated.
The law exempts taxpayers from paying 90 percent of extra fees imposed for the late payment of taxes if the dues are paid within 60 days from the time the law goes into force, 70 percent if paid within the next 60 days, and 50 percent if paid within the following 60 days after that.
Maait said that taxpayers will be 100 percent exempted from paying the extra fees if they pay the original dues before the law goes into force.
The minister added that the new law also extends the current law on tending tax disputes on the administrative level until December, thus keeping the legal position of taxpayers intact.
The law is in line with President Abdel-Fattah El-Sisi’s directives to support the economic sectors hardest-hit by the pandemic.