Egyptian sales tax expected to boost economy
The Egyptian authorities have recently stated that the application of the new General Sales Tax may boost the country’s economy, reported Al-Ahram daily. The same sources added that the tax should not be considered a financial burden to the Egyptian society.
Head of the Sales Tax Authority, Mahmud Muhammad Ali, stated that in fact consumers have already been paying the tax in the last two phases of the Egyptian tax plan, only now the exact amount of the tax will be marked on sales receipts.
Ali added one of the measure’s implications would be a drop in production costs. In effect, this should improve business for dealers, since producers will now be able to have taxes included in the cost of production refunded to them.
Revenue from taxes in 1999-2000 amounted to 16.8 billion Egyptian pounds ($4.33 billion), while in 1991 this figure stood at only EP 2.4 billion. Egypt’s sales tax, similar to that in France, is considered to be one of the lowest in the world. — (MENA Report)
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