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English news

02-Mar-2017

Finance Minister to propose gradual stamp duty on stock market transactions

The Minister of Finance, Amr Al Garhy, will propose a stamp duty on stock market transactions on buyers and sellers starting at 12.5bps to the government next week, he said. The tax would go up to 15.0bps in the second year of its implementation and 17.5bps in its third. The proposal has not been finalised yet and may be submitted to Cabinet for discussion as early as next week, he said. "We are working on not affecting the size or value of transactions in the market," Garhy said. A senior Ministry official had said on Thursday that the Ministry would propose a tax of 20.0bps. The proposed tax would have to be approved by the Cabinet of ministers before being sent to Parliament for a vote. Egypt imposed a stamp duty on buyers and sellers in May 2013, collecting more than EGP350mn (USD18.77mn) in revenue before the levy was replaced in July 2014 by a 10% capital gains tax. It suspended the capital gains tax in May 2015 for two years, under pressure from investors. The Higher Investment Council last year extended the suspension of capital gains tax for three years, until 2020 as part of efforts to draw investors back. 

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