New taxes cause LE7.5 bn in losses on stock exchange

The main index of the Egyptian stock exchange fell by 2.6 percent on Thursday in response to the government levying new taxes on capital profits.

The government imposed a new tax of five percent on businesses with a yearly turnover of more than LE10 million.

The losses at the beginning of the session stood at LE10 million, but reduced to LE7.5 at closing time.

The Financial Supervisory Authority is preparing a memorandum on the foreign investment ramifications of the tax, to be sent to the Supreme Council of the Armed Forces and the cabinet.

“The government takes sudden and unstudied decisions,” said stock exchange director Mohamed Abdel Salam.

Translated from the Arabic Edition

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