EGX stamp tax revenue hits 3bn Egyptian pounds in a year
The outcome of the stamp duty on the Egyptian Exchange (EGX) transactions reached 3.2 billion pounds ($179 million) in one year, according to government sources.
The tax outcome exceeded analysts’ expectations of 2.124 billion pounds.
The 0.125 percent tax on the main market generated a revenue of 700 million pounds, Misr for Central Clearing, Depository and Registry’s managing director Tarek Abdel Bary said.
In June 2017, Egyptian President Abdel Fattah al-Sisi issued a decree to implement the stamp tax on local stock market transactions for both buyers and sellers for three years.
The duty has been set at 1.25 pounds for every 1,000 pounds for the first year of the tax’s introduction, rising to 1.5 pounds during the second year and 1.75 pounds during the third year.
In May 2013, Egypt imposed the stamp duty tax on buying and selling transactions in its stock market, logging an outcome of 350 million pounds at the time.
The tax was suspended in July 2014, and replaced with a ten percent tax on cash dividends and capital distributions.