VAT can be implemented in October if House approves bill
The value-added tax (VAT) could be implemented as early as October if the House of Representatives approves the bill, said Finance Minister Amr El Garhy at a hearing held by the House Economic Committee. Delays in passing the VAT this year have led the ministry to reduce its estimated intake from the tax from EGP 32 bn, according to Al Shorouk. El Garhy added that he’s met with members of the House 15 times to discuss the tax.
It seems clear we’re going to see more than four dozen exemptions in total from the VAT, with media reports putting the number at anything from 52 (Al Masry Al Youm, quoting El Garhy), to 57 (Deputy Finance Minister Amr El Monayer, also cited by Al Masry Al Youm).
Finance Ministry sources tell AMAY that a cut to the Ministry’s proposed 14% baseline rate see the state give up revenues of as much as EGP 13 bn per year. Leaders of the Federation of Egyptian Industries and the Federation of Egyptian Chambers of Commerce are disputing that figure. The House Planning and Budget Committee was set to decide on the baseline rate on Sunday, but instead chose to leave it up to Parliament to decide.
Members of the Economic Committee have expressed concern about the proposed VAT lotter, with two committee members opposed to the idea.