Thursday, 17 December 2015

A two-step on the VAT?

A two-step on the VAT? It looked for a little while yesterday as if we weren’t having a VAT after multiple news reports that the Finance Ministry is now considering alternatives to implementing the value added tax (VAT). Al Shorouk broke the news, reporting that no date for the implementation of the tax has been set and, even if it is approved by the incoming parliament soon, it will not be able to generate the expected revenues for the current fiscal year. Close to midnight, the ministry put out a statement (below) saying that dropping the VAT is not an option — the enabling legislation will be at the top of the House of Representatives’ agenda when it convenes. The FY2015-16 budget projects EGP 98.5 bn in VAT revenues. Al Shorouk says the government still fears the inflationary impact of implementing the new tax regime.

Download the statement in Arabic (.docx file)


Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.