Egypt to cut VAT on medical devices to 5%, exempt dialysis equipment inputs

Egypt plans to cut value-added tax (VAT) on medical devices to 5 per cent from 14 per cent under a new package of tax facilitation measures aimed at supporting the healthcare sector, Finance Minister Ahmed Kouchouk said on Monday.

The package also exempts components, spare parts, and supplies used in kidney dialysis machines and dialysis filters from VAT, Kouchouk said during a meeting with Prime Minister Moustafa Madbouly.

The measures form part of the government’s second package of tax reforms aimed at supporting the healthcare sector and encouraging domestic medical manufacturing.

Lowering VAT on medical devices and exempting dialysis equipment inputs will help reduce costs for healthcare providers while supporting domestic medical manufacturing, the minister added.

The proposed measures will take effect once approved by parliament.

Attribution: Amwal Al Ghad English