By Amr Adel

Dubai – Mubasher: Egypt’s government expects the value-added tax (VAT) draft law to be endorsed by the parliament during the second quarter of 2016 (the last quarter of the current fiscal year 2015/2016), said Prime Minister Sherif Ismail.

The PM told reports during a global summit in Dubai today that the government would present the draft law to the parliament by the end of this month.

The value-added tax is levied on the difference between the cost and sale prices for local and imported goods. It will be paid by consumers.

Implementation of VAT will increase the country’s tax proceeds by around EGP 30 billion ($3.8 billion) in the fiscal year 2015/2016, showed official forecasts.

In reply to a question about fixing the pound exchange rate in the country’s budget for the new year at 8.25 per dollar, Ismail said it is according to estimated calculations and may be subject to amendments. He also indicated that the new budget includes estimates for prices of crude oil as well as other commodities like wheat.