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No agreement on capital market stamp tax yet - MoF

No agreement on capital market stamp tax yet - MoF
The Egyptian Ministry of Finance - (Photo Credit: Arabianeye-Reuters)

By: Mostafa Adel

Cairo - Mubasher: The Egyptian deputy finance minister for tax policies, Amr El Mounir, said that his ministry is negotiating applying the stamp duty tax to the capital market, but that no agreement had been reached yet regarding its rate.

The Ministry of Finance (MoF) has met with parties involved in the Egyptian Exchange (EGX) to reach the best techniques for applying the tax, El Mounir told Mubasher on Tuesday.

El Mounir added that an agreement on the tax rate has not been reached yet, noting that not applying the tax is not acceptable, and that the MoF is trying to reach a consensus on the tax rate.

The deputy finance minister expects the tax talks to be over by next week.

The EGX recently presented a note to the MoF concerning the cons of applying the stamp duty on the capital market in the current period, suggesting that it should not exceed 0.1%, since imposing it at a higher rate will negatively affect liquidity, which could fail the expected governmental initial public offerings (IPOs).

The financial stocks department of the Federation of the Egyptian Chambers of Commerce (FEDCOC) will meet on Tuesday with the chairman of EGX, Mohamed Omran, to discuss the tax and make a final recommendation to the finance ministry.

Translated by: Moslem Ali