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FINANCIAL NEWS
Egypt scraps plans of dividend payments tax
07 Jun 2011
(MENAFN) Egyptian Exchanges chairman, Mohammed Abdel Salam, stated that the country’s finance ministry canceled its earlier plans of imposing a capital gains tax of 10 percent on dividend payments, reported The National.
Abdel Salam also said that the reason behind the drop of the tax was that the decision was opposed by a large number of members of Egypt’s business community who argued that the plan would hinder the country’s economic recovery.
The chairman added that the planned taxed would have brought in extra revenues of less than USD334 million while discouraging companies and limiting their ability to attract investors.
It is worth noting that Egypt estimated its expenditure in the fiscal year which starts in July to climb to USD14.52 billion up from USD11.58 billion a year ago.
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