House grants preliminary nod to new banking tax treatment
LEGISLATION WATCH- House grants preliminary nod to new tax treatment of bank holdings of state treasuries: The House’s general assembly gave its preliminary approval to proposed amendments to the Income Tax Act that would change how banks and corporations account for income from investments in government debt, Youm7 reports. The measure will force banks and companies to separately account for income derived from their holdings of government debt and could see their effective tax rate rise. A senior government official told us last week that the anticipation of the move by banks drove them to ratchet up their participation in treasury auctions, driving down yields and contributing to an influx of inflows and an appreciating EGP.
CORRECTION- We appear to have gotten it wrong last week when we said that the amendments would only be changes to the executive regulations and so would not require the sign off of the House.
Also coming from the House yesterday: Ratifying a decision taken last year by President Abdel Fattah El Sisi to introduce changes to customs duties on a range of items — including introducing 20% tariffs on all imports by hotels and tourism businesses and reducing import tariffs on hybrid and electric cars.