Tax Authority Chairman Mostafa Abdel Qadir said the capital gains and cash dividends tax of the stock market, which was approved by the government and submitted to the president, would not be reevaluated.
Abdel Qadir gave this statement on the sidelines of Al-Masry Al-Youm’stenth anniversary celebration.
“The tax is projected to yield LE10 billion,” he said, adding that the government canceled a stamp tax on stock market trading a year ago after yielding LE4 billion.
On the proposal of a value-added tax (VAT) that would replace the current sales tax, he said this would be offered to a community dialogue.
“It will be a lump sum figure,” Abdel Qadir said.
The introduction of the new tax has been highly controversial as speculators fear it could scare foreign investors from Egypt, according to president of the Egyptian stock market, Mohamed Omran, in a press conference early June.
Stock market and economic players have been divided over the 10 percent tax on stock market capital gains as many say the new law would cause foreign investors to pack up and invest elsewhere.
Federation of Egypt Chambers of Commerce Chief Ahmed al-Wakeel said the federation submitted a memo to Interim President Adly Mansour demanding that passing the law be postponed.
The memo hinted that investors realize burdens that everyone will be loaded with until economy recovers, Wakeel told Al-Masry Al-Youm.
Wakeel also said the memo requested that such measures be within a comprehensive economic reform package. The memo called on the president not to take rash decisions that could have negative impact on the investment atmosphere.
Prime Minister Ibrahim Mehleb told Al-Masry Al-Youm on 1 June that the tax on stock market capital gains will not be halted, saying that the government imposed it after study and that finance minister held discussion over it with stock market players, chief and head of Capital Market Authority. He added that giving wrong information has contributed to a state of confusion.
Edited translation from Al-Masry Al-Youm
