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Monday, 4 May 2020

House approves new fees to help government plug the deficit as it spends bns to fight covid-19

LEGISLATION WATCH- House approves new fees to help government plug the deficit as it spends bns to fight covid-19: The House Planning and Budgeting Committee approved yesterday a series of new “development fees” proposed by the Finance Ministry to help it plug the fiscal deficit as the state mobilizes cash to fight covid-19, according to Al Shorouk. The measures will see everything from mobile phones to pet food get just a little bit more expensive.

Among the newly imposed or newly hiked fees:

  • Mobile phones and accessories would be subject to a 5% fee on the total cost after tacking on VAT and other taxes;
  • Commercial internet bills would be subject to a 2.5% fee;
  • Pet food would be subject to a fee equivalent to 25% of the customs invoice for the product;
  • A EGP 2 fee will be applied to all transactions charged EGP 0.05 or more in stamp tax, with the exception of butane cylinders and individual tickets for railway and land transport;
  • Fees for concerts and other entertainment events in hotels or public spaces would rise to 12% from 10%. Events hosted by both the state and by organizations affiliated with the Culture Ministry would be exempt;
  • Contracts between sporting teams and foreign or local athletes or coaches would be subject to a 3-10% fee, depending on the value of the contract;
  • Raw tobacco would be subject to a fee of EGP 1.5/kg, while manufactured tobacco products and shisha tobacco would be subject to a EGP 3/kg fee;
  • Imported finished steel products sold on the local market would be subject to a 10% fee after customs and taxes.

One fee that didn’t make it past the committee: A new EGP 0.30 / liter development fee on gasoline and EGP 0.25 / liter on diesel, according to the local press.

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