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Egypt votes on VAT

  • Mar 25, 2016 | Richard Asquith

Egypt votes on VAT

The Egyptian parliament is set to vote on a bill to implement VAT in the country as part of a package to reverse the budget deficit and restart economic growth.

The governing party is looking to boost growth from the current 4.2% to 6%, and reduce the deficit from the current 11.5%. Since the overthrow of the last government in 2011, unemployment has remained at over 10%.

Aside from introducing a more efficient VAT regime, replacing the existing 10% sales tax, the government wishes to cut petrol subsidies and reduce the public sector wage bill. The government has been devaluing the Egyptian pound in an effort to boost exports.

No date has been set for the vote on the introduction of VAT and other measures.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.