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Monday, 1 August 2016

El Monayer hints at a possible review of the capital gains tax

IMF hasn’t demanded review of tax system, but capital gains may be up for discussion in the future: Deputy Finance Minister Amr El Monayer said yesterday the IMF had not called for an overhaul of the tax system, telling Al Shorouk in an interview that the government’s tax policies align with the IMF’s views. The IMF team has not commented on the suspended capital gains tax, he added, saying the government was planning to review the tax at a later stage. The Mahlab government backed out of enforcing the 10% tax on gains made on the EGX in May 2015, suspending the measure for two years after retail investors dug-in their heels. As we noted then, the IMF had criticized Egypt’s decision to delay collection of the tax, saying it would place the burden of public finances on “people who are less able to afford it.”

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