Egypt to extend VAT suspension on industrial machinery to support manufacturers

Egypt plans to extend the suspension of value-added tax (VAT) on machinery and equipment used in industrial production to four years from two under the second tax relief package, Minister Ahmed Kouchouk said  Monday.

The proposal forms part of the government’s second package of tax reforms aimed at reducing production costs and encouraging productive investment.

The package extends the VAT suspension on machinery and equipment used in industrial production to four years instead of two to support industry and investment, Kouchouk said during a meeting with Prime Minister Moustafa Madbouly..

The proposed measures will take effect once approved by parliament.

The reforms were reviewed during a meeting chaired by Prime Minister Moustafa Madbouly as part of the government’s broader efforts to improve the business environment and strengthen private-sector-led growth.

Attribution: Amwal Al Ghad English