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Thursday, 27 August 2020

Cabinet approves in principle amendments to VAT Tax Act, fees for university examinations

CABINET WATCH- Could we finally be getting the VAT lottery? The Madbouly Cabinet gave a preliminary sign off on a package of incentives that they hope will encourage people and businesses to toe the line on tracking and paying VAT. The program — dubbed “Your taxes are for you” — may include “financial or non-financial” rewards, and may even include a lottery. The program is meant to help the Finance Ministry with collecting data and cutting down on VAT evaders, cabinet statement said on Wednesday. A committee that will include the finance, ICT, and planning ministries will be set up to study the program. No other details were given on the program.

Did you say lottery? That’s right: Back when they were first announced, articles 35 and 74 of the VAT Act’s executive regulations — which deal with incentives and rebates — charge the Finance Ministry with outlining the conditions and rules for a potential lottery.

Public university students will now pay (monetarily) for failing: The cabinet also approved amendments to the Public Universities Act which impose exam fees for students at public universities who are retaking the exam, repeating an academic term, those sitting examinations from abroad, and those enrolled on the hourly credits system. Medicine and dentistry students would be required to pay EGP 6-12k, while engineering, computer science, pharmacy and physical therapy students would pay EGP 5-10k. Veterinary medicine, nursing, agriculture and natural sciences students would pay EGP 3-6k. The fees could also vary depending on the number of times students sit the examinations.

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