(AFP File Photo / Khaled Desouki)
The Egyptian Stock Exchange (EGX) is looking to lower the listing fees for companies seeking entrance into the stock market by amending the relevant law, EGX Chairman Mohamed Omran said.
Omran added that this step will help increase the domestic stock market’s competitiveness in the region, state television reported.
On Monday, the Egyptian government announced it will halt the implementation of the 10% capital gains tax for two years, whilst maintaining the 10% tax on dividends.
The capital gains tax was introduced to the market in mid-2014, and was met with strong resistance from investors.
A lawsuit was recently filed by some investors to drop the capital gains tax, sparking rumours that amendments might be introduced and that the floor could be opened for further government/investors agreements. Discussions between Prime Minister Ibrahim Mehleb and investors have been taking place in the past few months.
Minister of Investment Ashraf Salman told Daily News Egypt that the decision was necessary to deepen the market, which is still recovering. “We have not yet considered the consequences of the presidential decree of ceasing the tax for two years,” added Salman.
“The government’s response explicitly means that this government is fully informed with the economic conditions and has a clear and organised vision of the development process,” Omran said. He noted that the decision sends a message that the government is committed to support investment climate.
