Finance Minister Ahmed Galal (Photo: AO)
The Egyptian government is expecting an additional LE322 billion (roughly $46 billion) in tax revenues, as part of the 2013/2014 budget, an Egyptian Tax Authority (ETA) official told Ahram Online on Tuesday.
The revenue boost is a 50 percent rise from revenues in the 2012/13 fiscal year, the ETA official added.
The current fiscal year would witness the introduction of new taxes worth 2.5 percent on actions related to the ownership of properties such as the right to sell them, said Mohamed Tareq, head of the financial and investment companies’ department of the ETA.
In May 2013, the now-dissolved Shura Council (Egypt’s upper house of parliament) ratified amendments to the Income Tax Law No.91 of 2005, which included imposing taxes on profits made by property owners –natural or juridical persons – from selling their properties.
“The government is also intending to impose taxes on the profits gained by informal brokers trading in real estate,” Tareq told Ahram Online.
Expected tax revenues account for around 62 percent of total planned revenues in the 2013/14 budget, which have been estimated at LE516 billion (roughly $73.8 billion).
Al-Ahram Arabic news website reported in May that the government aimed to collect around LE2.7 billion (roughly $388.5 million) in revenues from property taxes imposed on 15 million units.
In a related development, sales taxes on six commodities suggested by the previous government have yet to be ratified following the dissolution of the Shura Council and the ouster of Islamist president Mohamed Morsi.