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Sunday, 26 August 2018

Parliament’s Housing Committee drafts new, pseudonymous real estate tax law

LEGISLATION WATCH- Parliament’s Housing Committee drafts a new real estate tax law: The House of Representatives’ Housing Committee has drafted new legislation on taxing real estate to replace the existing law under an alias: The Returns Act. The legislation would impose taxes on real estate based on size and location and would be applicable to commercial and residential properties alike, Al Masry Al Youm reports. The annual tax would be added to electricity bills once a year, and is expected to reel in around EGP 17 bn per annum, committee head Moataz Mohamed tells the newspaper. The committee has submitted the draft law to Finance Minister Mohamed Maait for review ahead of discussion at the House of Representatives when MPs return in October for the new legislative season.

Background: The Finance Ministry’s intention to reform the real estate tax has drawn the ire of the business community and private citizens alike, in no small part due to the lack of clarity on the specifics of these amendments. Sources had also told us that the Madbouly Cabinet is devising a new real estate tax formula as part of a major real estate tax overhaul that would impact both business and private landholdings, while the Finance Ministry is reportedly looking to impose real estate taxes on the oil and gas industry.

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