Egypt to introduce VAT in 2014

The Egypt Sales Tax regime may be phased out by 2014 as the government looks to introduce a full Value Added Tax system.

The plan is to overhaul this simple Sales Tax regime in July 2014.

Currently, a 10% sales tax is levied on most goods and imports.  There is also a reduced 5% rates basic goods and services.  Exports are exempt.  There is a 25% rate for certain luxury goods.

The neighbouring Gulf States are also considering introducing VAT.