Compromise on VAT fails: House Budget Committee to recommend 12% rate. The House of Representative’s Planning and Budget Committee will recommend a baseline value-added tax rate of 12% in its report to the House, said deputy committee chair Yasser Omar. The report is due next week. The Ismail government has consistently pushed for a 14% rate, hinting it would only consider moving to a lower rate if the list of exemptions were to be pared-back. The committee has countered by saying the list of exemptions should be expanded. The House as a whole has the power to accept the committee’s recommendation, side with cabinet or pick its own rate, said committee chair Hussein Eissa. Omar tells Al Masry Al Youm that the committee did get the Finance Ministry to reduce the tax on cooking oils, television sets (yes, that most essential of goods) and refrigerators.