Minister of Finance Dr. Youssef Boutros Ghali has reiterated that real estate taxes will be reviewed by the People’s Assembly will include the elimination of city cordons so that taxes will be applied on all buildings equally and without discriminiation, considering Egypt a single cordon.  Taxes will be reduced from 46% to 10% of the rental value.  Exemptions will also be eliminated except for sporadic shanty areas, low brackets and old leases; in addition to exempting any housing unit with a rent below 150 pounds monthly

Minister Ghali explained that the new order will take into consideration the economic circumstances of small businesses and will alleviate tax burdens on the smaller businesses, bearing the size and ambitions of the small businesses to grow.  Dr. Ghali announced that the first quarter of the new year will witness the setting up of a model district for medium taxpayers in line with the larger center for big businesses.  Other sample tax units will be set in Cairo in preparation for generalizing the project in all governorates.

The Minister noted that mid 2007 will witness the completion of a new law named “value added tax” to avoid the problems arising from sales taxes and will include the doubling of the current operation for industrial and commercial constructs to simplify procedure among businesses.  Assistant to the Minister Ashraf al Araby reiterated the Ministry’s keenness to see tax returns filed and that the government will support businesses.

 (source :Ministry of Finance)