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Sunday, 24 July 2016

Tax Authority considering removing mineral resources from the VAT exemption list

Miners could face value-added tax: Mined or quarried products could move off the list of VAT-exempt products and services, Tax Authority chief Abdel Moneim Mattar has said. His remarks came after suggestion that leaving miners out of the VAT system could open the industry to tax evasion, Al Mal reports. The draft VAT act classifies minerals as VAT-exempt on page 69. If you were wondering how is it still possible to discuss amending the draft after it is with parliament, well, the door remains open for the ministry to retract and amend the legislation, said Ramadan Sadik, advisor to the finance minister on taxation.

In other VAT news, the Egyptian Society of Auditors and Accountants has called for the EGP 500K mandatory minimum income level for registering for the VAT be scrapped, echoing similar reservations for the clause raised by the Federation of Egyptian Industries.

** Tap here to read the Youm7 leak of the draft value-added tax legislation.

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