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Wednesday, 31 August 2016

Jarvis praises Egypt for passing ‘historic’ VAT legislation

IMF’s Jarvis praises passage of VAT bill: Passing VAT legislation is an “historical achievement” for Egypt, Chris Jarvis, the IMF’s mission chief to Egypt said. Amr El Garhy’s Finance Ministry has drafted a “good” law, Jarvis added, extending praise to the House of Representatives for “opening new channels for discussion,” Al Shorouk reported. His statement came following the parliament’s approval of the VAT on Monday. VAT will help the government expand its revenue sources and allow for more spending on social programmes. Jarvis also said the IMF is willing to provide technical assistance as well as international best practices for implementing and administering the tax, according to Al Masry Al Youm. Deputy Finance Minister Amr El Monayer welcomed Jarvis’ statements. MPs tell Al Borsa that the law will come into effect in October once the executive regulations have approved in September.

On a related note, it would appear that the Finance Ministry will be placing private medical practices under the VAT system, according to statements from a ministry source. The ministry is preparing new model invoices for law firms, medical practices and engineering consultants as part of their transition into the VAT, said the source according to Al Shorouk.

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