Egypt’s Finance Minister has announced that the interim Government is in the process of drawing up amendments to the tax law aimed at widening the tax base and to dealing with the problem of tax evasion and avoidance. Egypt intends to broaden the income tax base and pass value-added tax legislation to increase government revenues and tax equity. The interim Government intends to introduce a broad-based VAT with a standard rate between 10 and 12 percent, in place of the sales tax rates that have covered a broad range between 5 and 45 percent. Lower tax rates or tax exemptions would be introduced for basic necessities including some foodstuffs, education, health and other social services.
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