Egypt Parliament VAT rate challenge
- Aug 20, 2016 | Richard Asquith
A key Egyptian Parliament committee has approved the government's draft VAT implementation plan for March 2017. However, it has recommended that the proposed standard VAT rate of 14% be reduced to only 12%. The current sales tax rate is 10%.
The parliament will now discuss the potential rate in open debate and a vote by the whole Parliament.
The Bill to introduce the new indirect tax, aimed at reducing bureaucracy and compounding tax, should help boost local manufacturing and establish Egypt as a regional production hub.