By: Mostafa Adel

Cairo – Mubasher: The Egyptian government is likely to collect less than it expected from the capital gains tax in the fiscal year 2016/17, the Ministry of Finance said in a press release.

Around EGP 2.5 billion is forecast to be raised from the capital gains tax this year against a projection of EGP 3.5 billion, the ministry added.

Out of the proposed tax receipt, the dividend distribution tax brought in EGP 1.2 billion, while reassessments, and other miscellaneous items amounted to EGP 803 million, and EGP 523 million, respectively, the press release indicated.

The main driver behind lower estimation is the suspension of the capital gains tax imposed on EGX listed companies, a first-hand official at the Egyptian Tax Authority (ETA), who preferred to be anonymous told Mubasher, adding that the government expected to raise EGP 3 billion during the fiscal year 2015/16.  

Moreover, the authority is currently reviewing all items of the projected tax receipt for 2016/17, in case any required amendments should be made while the House of Representatives is considering the year-ahead budget, the source added.  

In July 2014, the government enacted the capital gains tax but suspended it for two years in May 2015.