Egyptian Tax Authority Introduces Targeted Amendments to VAT Law to Broaden Tax Base and Correct Distortions

• The Egyptian Tax Authority announced amendments to the Value-Added Tax Law to broaden the tax base and correct market distortions.
• No changes to VAT exemptions on essential goods, food, healthcare, or education, and no increase in the general VAT rate.
• Construction sector now subject to standard VAT rate instead of 5 percent schedule tax, allowing contractors to deduct input taxes.
• Shops and administrative units in non-commercial areas remain VAT-exempt, while those in commercial premises taxed at 1 percent of sale or rental value.
• Crude oil subject to a 10 percent schedule tax, not affecting domestic petroleum product prices.
• Cigarette tax brackets expanded, with a fixed tax increase of EGP 0.50.
• New fixed and progressive schedule tax on alcoholic beverages based on alcohol content.
• Amendments aim to support producers, manufacturers, and align with international standards.

Source: dailynewsegypt.com

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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