Source: The Tahrir Institute for Middle East Policy
Author(s): TIMEP
Original Link: https://timep.org/reports-briefings/timep-brief-vat-law/
The VAT Law replaced the existing 10 percent sales tax with a new VAT. The rate was initially set at 13 percent, and increased to 14 percent in July 2017, the start of the fiscal year following the law’s ratification. Although the VAT Law applies to a broad range of goods and services identified by the text, it also exempts 56 basic goods and services, including all military-owned businesses, in order to ease the burden on those considered economically vulnerable. Additionally, the law amplifies the punishment for tax evasion, with violators facing imprisonment of three to five years and a fine between 1,000 and 10,000 Egyptian pounds (LE). Important to note, however, is that tax evasion claims can only be initiated upon the minister of finance’s request, raising concerns about possible unfair application.
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