Tax revenues for the 1H2017-18 grew 62% y-o-y to EGP 249 bn, Vice Minister of Finance Amr El Monayer said yesterday, Al Mal reports. The growth was driven by a 41% y-o-y increase in income tax collections to EGP 103 bn, as well as 83% y-o-y rise in proceeds from the value-added tax, which reached EGP 21 bn for the first half of the fiscal year. Real estate taxes also grew by 70% y-o-y to EGP 1.6 bn, while customs reeled in EGP 15 bn for the period, an increase of 44% y-o-y, according to El Monayer.

Tax proceeds for FY2017-18 is expected to hover around 14.5-14.7% of total GDP, up from 13.6% in FY2016-17. The government is looking to raise that figure to 19% of GDP over the next four years, El Monayer also said, explaining that a number of legal and regulatory changes. These include legislation to unify and simplify all tax procedures, as well as the Customs Act, which primarily work to clamp down on tax evasion. El Monayer said a first draft of the bill, which has been under consideration for some eight years, is being reviewed now.

Capital gains tax update: The measure, currently on hold until 2020, would come into effect once the state establishes a clear framework for its implementation, Monayer said. He added that the stamp tax on capital market transactions — a 0.125% levy that will rise to 0.175% in its third year — is more convenient to current circumstances.