Egypt weighs simpler stock market tax regime to boost trading

Egypt is discussing plans to simplify taxation on stock market transactions by replacing capital gains tax on listed companies with a reduced stamp duty to boost trading activity and improve predictability for investors, Chairman Omar Radwan said Monday.

Speaking at a luncheon hosted by the British Egyptian Business Association (BEBA), Radwan said the proposed shift would remove a long-standing source of uncertainty for investors and simplify tax obligations in the market.

“Investors do not fear taxes; they fear complexity,” he said, describing the move as part of broader efforts to make Egypt’s capital market more efficient and accessible.

Under the proposed framework, capital gains tax calculations would be replaced by a simplified stamp duty on transactions, reducing administrative burdens and providing greater clarity for investors, Radwan said.

Capital gains taxation has long been a contentious issue for Egyptian investors and market participants, who have argued that the complexity of calculating and administering the tax has weighed on trading activity and weakened investor confidence.

Radwan said the revised approach was aimed at encouraging higher market volumes and improving liquidity as authorities seek to broaden participation in the exchange.

The proposed tax changes are being discussed with the Finance Ministry as part of wider market reforms designed to improve the investment climate and attract new listings.

The comments come as Egypt steps up efforts to strengthen capital markets as a source of financing for private-sector growth amid broader economic reforms aimed at attracting domestic and foreign investment.