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Misr Hotels exits from HOTAC on VAT crisis

Misr Hotels exits from HOTAC on VAT crisis
Misr Hotels exits from HOTAC on VAT crisis
Misr Hotels
MHOT
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Cairo – Mubasher: Misr Hotels on Wednesday announced it will exit from the Holding Company for Tourism and Hotels (HOTAC) and will stop investing in it.

This move came as Misr Hotels is currently facing obstacles with the Egyptian Tax Authority regarding the value-added tax (VAT) on revenues from the Nile Ritz-Carlton’s casino, according to a statement to the Egyptian Exchange (EGX).

Accordingly, HOTAC’s rights and duties will be limited to the Egyptian General Company for Tourism and Hotels (EGOTH), the company highlighted.

The company said that the sum it previously paid to HOTAC will be considered as a debit balance to be reimbursed.

Misr Hotels’ board of directors agreed to pay all VAT dues worth EGP 34.8 million to the tax authority, the company added, pointing out it has paid EGP 1.5 million of the taxes.

Mis Hotels previously reported an EGP 149.8 million in profits during the July-June period of fiscal year 2017/2018, versus EGP 95 million in the corresponding period of FY16/17.