The Ministry of Finance has decided to exempt banking services provided by banks operating in the Egyptian market from the value-added tax (VAT). However, financial banks are calling for further clarification on the matter and whether the decision would exempt banks from paying VAT or only registration. The Minister of Finance, Amr Al-Garhi, said in a statement last week that the Ministry had completed the VAT draft law, which is to replace the current tax law on sales. The Ministry exempted a group of 52 goods and services from that tax, including banking transactions carried out by the banks. The Ministry of Finance estimated that the VAT would bring EGP10bn in revenues to the new budget, but this exemption would reduce that figure. The Egyptian Tax Authority has demanded that banks operating in the market register for the VAT. However, banks refused, out of concern that they would be forced to pay VAT on services rendered to their customers, especially in light of a prior dispute between banks and the Authority on the definition of those services. (The Daily News Egypt)