The heated debate over Egypt's new property tax law continued well into 2009, and will be back in the spotlight when it goes go into affect this January.

In August, Finance Minister Youssef Boutros-Ghali confirmed that Egypt's Property Tax Law will be applied to residential and commercial properties with the start of the new year.

Since it was first proposed a couple of years ago, much of the debate surrounding the new law centered on which property would be taxed and how much that would amount to. While advocates argued that it adheres to social solidarity, opponents were wary of the strain it would put on Egyptians already grappling with financial burdens.

These terms were made clear in 2009, and helped quell some of the concerns about the tax.

Houses and flats valued less than LE 450,000 will be exempted from taxes, while houses valued at LE 1 million would be taxed LE 660 per year, officials said. Individuals and corporations must submit their real estate assets by the end of the year for valuation, which will take into account location, quality of construction, provision of basic services and proximity to public parks, health and education facilities.

Owners will be able to appeal the valuation of their properties within 60 days of the decision and the units will be appraised every five years.

The local press quoted Tarek Farag, chairman of the Real Estate Tax Authority, as saying that "90 percent of Egyptians" will be exempt and so it will not be an added burden.

The tax was placed at 10 percent with LE 6,000 waived from the original evaluation, and 30 percent off the total value of the property for maintenance expenses.