Egypt Amends VAT to Broaden Tax Base, Correct Distortions, Support Human Development Spending

• Egypt introduces limited amendments to VAT to broaden tax base and correct distortions
• Amendments aim to support increased spending on human development
• Egyptian House of Representatives passed a draft law to raise VAT rates
• No changes to VAT exemptions for essential food, health, and educational services
• Reforms aim to enhance tax equity and transition to electronic systems
• Construction services subject to general VAT rate, allowing contractors to deduct VAT on inputs
• Shops and administrative units in non-commercial areas remain VAT exempt
• Administrative units in commercial locations subject to a one percent tax
• Crude oil subject to a 10 percent schedule tax, with no increase in local fuel prices
• Adjustments to cigarette tax brackets and a modest increase in specific tax rate
• Taxation of alcoholic beverages shifts to a tiered and fixed schedule tax based on alcohol content

Source: english.ahram.org.eg

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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