Mohamed Maait, Minister of Finance, said that the draft law amending some provisions of the State Resources Development Fee Law does not affect basic and necessary goods. He added that there is no increase in the departure fees for tourists, while the departure fees for Egyptians have been increased by EGP 50 only.
Maait said that the amendments, which were approved by the Parliament’s plan and budget committee, were limited to some entertainment and non-essential goods, such as caviar. He pointed out that the amendments to the theater and nightclub entrance tax law included some entertainment activities such as ice skating, singing parties and disco, with an increase from EGP 1 to 20.
He added that the amendments to the Income Tax Law, approved by the Parliament’s Plan and Budget Committee, included increasing the tax exemption limit by 50% to EGP 36,000 annually, in order to achieve social justice. Additionally, an incentive that does not exceed 5% of the total value of the tax due annually for individuals who are obligated to file tax payments was applied.
He pointed out that the amendments also included approving simplified tax for small and micro enterprises whose turnover is less than EGP 10m annually with a flat rate in the same categories as the small and micro enterprises law.
He explained that if sales or turnover do not exceed EGP 250,000, the tax is EGP 1,000 annually, and if it does not exceed EGP 500,000, then the tax is EGP 2,500. If it doesn’t exceed EGP 1 m, then the tax is 0.5% of the volume of sales or business. On the other hand, if it ranges from EGP 2m to EGP 3m, the tax is 0.75%. If it ranges from EGP 3m to EGP 10m, the tax is 1%.
Maait stressed that the amendments included a new treatment of the distribution tax aimed at reducing the tax burden on companies.
