CAIRO, May 29 (Reuters) - Egypt's parliament voted on Monday to extend for three more years a freeze on its capital gains tax.
The country originally imposed a 10 percent tax on capital gains in July 2014, as part of efforts to replenish depleted state coffers, but the following year it suspended the tax under pressure from investors for a period of two years.
Monday's vote passed amendments to the capital gains tax law that will extend the freeze for another three years. They are subject to ratification by President Abdel Fattah al-Sisi.
Investors have said that a capital gains tax would discourage business at a time when Egypt was struggling to recover from its 2011 uprising and subsequent political upheaval.
Parliament also approved a stamp duty that will be imposed during the three years in which there is no capital gains tax.
It places a stamp duty on stock exchange transactions for both buyers and sellers of 1.25 Egyptian pounds per 1,000 for the first year, rising to 1.5 pounds in the second year and 1.75 in the third.
(Reporting by Nashaat Hamdy; Writing by Eric Knecht; Editing by Larry King) ((eric.knecht@thomsonreuters.com; +20 2 2394 8102; Reuters Messaging: eric.knecht.thomsonreuters.com@reuters.net))
The country originally imposed a 10 percent tax on capital gains in July 2014, as part of efforts to replenish depleted state coffers, but the following year it suspended the tax under pressure from investors for a period of two years.
Monday's vote passed amendments to the capital gains tax law that will extend the freeze for another three years. They are subject to ratification by President Abdel Fattah al-Sisi.
Investors have said that a capital gains tax would discourage business at a time when Egypt was struggling to recover from its 2011 uprising and subsequent political upheaval.
Parliament also approved a stamp duty that will be imposed during the three years in which there is no capital gains tax.
It places a stamp duty on stock exchange transactions for both buyers and sellers of 1.25 Egyptian pounds per 1,000 for the first year, rising to 1.5 pounds in the second year and 1.75 in the third.
(Reporting by Nashaat Hamdy; Writing by Eric Knecht; Editing by Larry King) ((eric.knecht@thomsonreuters.com; +20 2 2394 8102; Reuters Messaging: eric.knecht.thomsonreuters.com@reuters.net))
