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Tuesday, 16 May 2017

House Budget Committee signs off on capital markets stamp tax

House Budget Committee signs off on capital markets stamp tax: The House of Representatives’ Budgeting Committee signed off on the new 0.125% stamp tax (or EGP 1.25 for every EGP 1,000 in transaction value) that will be applied on the buy- and sell-sides of all capital market transactions once issued, Al Mal reported yesterday. The duty — which will gradually increase to 0.175% by its third year in effect — could come to a plenary session vote any day now, but will only be enforced once ratified by the presidency and published in the official gazette, probably in late May or early June, according to Deputy Finance Minister Amr El Monayer. Sell-siders: Reuters has the story in English, so you’ll want to touch base about this today with any particularly skittish clients. As originally conceived by cabinet, the stamp tax is two-sided and will be charged to both the buy- and sell-side of any transaction.

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