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Wednesday, 22 February 2017

Division in the finance community over the 0.5% stamp tax rate on EGX transactions

Hating on the proposed 0.4-0.5% stamp tax on EGX transactions: First, Egyptian Financial Supervisory Authority (EFSA) Chairman Sherif Samy argued against the tax. Now, the members of the Securities Division at the Federation of Egyptian Chambers of Commerce have met with EGX Chief Mohamed Omran and members of the Egyptian Capital Markets Association to “discuss alternatives.” Members of the Securities Division said on Tuesday they were conducting a study, at Finance Minister Amr El Garhy’s request, that will propose a stamp tax rate no higher than the 0.1% that was temporarily introduced in 2013, Al Borsa says.

Brokerage houses are also reportedly lobbying to have T+0 transactions exempted from the duty. The stamp tax in part is meant in part to make up for the revenue shortfall caused by yet another delay in imposing a capital gains tax. The Finance Ministry has reportedly been in negotiations with the EFSA over the stamp tax rate — an element of the reform package agreed on with the IMF — since early February.

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