‏The People’s assembly is expected to pass a proposal on a value added tax draft law to replace the traditional sales tax, representing the last phase on sales tax reform and which is expected to i...

  ‏The People’s assembly is expected to pass a proposal on a value added tax draft law to replace the traditional sales tax, representing the last phase on sales tax reform and which is expected to iron out deformities in the current law.  He said the intrusion of the value added tax law next year is meant to coincide with a reduction in inflation rate to avoid a soaring reaction in prices.  The value added tax will affect goods and services excepting those not mentioned in the law.  Araby was addressing the American Chamber of Commerce members under the chairmanship of Omar Mehanna.  Araby noted that Argentina has expressed particular interest in Egypt’s experiment in addition to most other countries. Mr. al Araby said that developing the tax system will include income tax reform and stamp duties, implementing a simplified accounting system for small and medium enterprises as well as improving tax returns.  Real estate and value added taxes will be included next year.‏ Al Araby also pointed out that the tax authority is planning  cooperation with banks to solve disputes amicably in relation to the sales and duty taxes.‏ Araby noted that the real estate fortune will be committed to a special tax system where the new law will commit the real estate to 10% taxes instead of 46%. (source :Al-ahram)