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Sunday, 2 February 2020

Tax Authority considers widening VAT exemptions

LEGISLATION WATCH- Tax Authority considers expanding VAT exemptions: The Tax Authority is considering expanding the list of items that qualify for VAT exemption to include oil products, crackers, soaps, air conditioners, and residential and non-residential units, head of the authority’s central administration El Sayed Sakr said at a conference, according to the local press. VAT on production inputs used for already exempt products — including wheelchairs and vaccines — may also be taken out of the tax, in a move that the pharma sector has been angling for. Under the existing VAT Act, 57 goods and services are VAT-exempt, including tea, sugar, milk, utilities, banking services, medicines and some health services.

We can expect to get more clarity on the VAT amendments within the next 2-4 weeks: The Finance Ministry has kept its cards close to its chest so far, revealing only that paper manufacturers may be in line for a tax exemption and that the changes would try to ensure that more registered taxpayers file VAT returns and pay their taxes.

FinMin considers VAT invoice incentives: The ministry is also considering granting tax discounts to companies that submit VAT invoices, Minister Mohamed Maait said during the conference. Ministry officials were supposed to meet yesterday with a company specialized in promoting tax invoicing among companies.

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