The value-added tax (VAT) is forecast to bring in revenues of EGP 190-200 bn during FY2017-18, the Finance Ministry VAT commissioner Abdel Moneim Mattar said at the Egypt Builders Conference yesterday, according to an emailed statement. According to Mattar, revenues from the tax — which is currently set at 13% and is due to rise to 14% in July with the start of the new fiscal year — are expected to reach EGP 170 bn by the end of the current fiscal year. The revenues from the 1 percentage point bump will be directed towards subsidies, he said.

The Finance Ministry will issue six directives on how the VAT is to be collected, Deputy Finance Minister Amr El Monayer told Al Mal. The instructions are expected in the coming days, he said. The ministry already issued this week a directive exempting some local restaurants from VAT. Mattar says the instructions will focus on how the VAT will be collected in specific sectors, including automotive manufacturing, contracting and jewelers. He added that the Tax Authority will sign cooperation protocols with professional service providers that could include exempting small-scale service providers for VAT.