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Monday, 20 February 2017

EFSA chairman takes a stand against a stamp tax rate of 0.5%

EFSA chairman takes a stand against a stamp tax rate of 0.5%: Egyptian Financial Supervisory Authority (EFSA) chairman Sherif Samy reportedly opposes the imposition of a stamp tax of up to 0.5% on stock market transactions, according to Al Mal, which quotes Samy as saying the move could curb inflows into the EGX. This follows reports by the newspaper earlier this month citing Finance Ministry sources that the ministry is considering implementing a stamp tax of 0.4-0.5%, a rate higher than the 0.1% imposed in 2013 and scrapped the following year. Samy argues that since retail investors account for the majority of turnover on the EGX, a slight increase in the stamp tax could lead to a negative outlook for the market. He has brought up this point to Finance Ministry officials and is quoted as saying he’s also pushing the ministry to codify the delay in implementing a separate capital gains tax for another three years as mandated by the Supreme Investment Council, before the deadline of the original postponement ends in May. The Finance Ministry is looking to impose the stamp tax in part to make up the revenue shortfall that appeared after the capital gains tax was postponed.

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