Interview – Egypt Regulator Chief: I can’t veto Stocks Tax

Egypt’s market regulator chief Sherif Samy said Wednesday he did not have the right of veto over the tax on stocks dividends and capital gains.

In an interview with CNBC Arabic on Wednesday, the chairman of the Egyptian Financial Supervisory Authority (EFSA) stated that he had taken part in official meetings held to discuss the tax, and the authority’s suggestions were full consideration.

Egypt’s President Abdel Fattah al-Sisi approved a law imposing a 10 percent tax on stock dividends and capital gains last July as part of efforts to overhaul an economy battered by years of political turmoil.

Although the law was approved in July, the “executive regulations”, which stipulate how it will be applied, were not published until last April and investors say there are many ambiguities.

Egyptian investors saw that the law was causing confusion and hampering investment, and filed a lawsuit against the government last week demanding changes to certain aspects of it. Yet, the Egyptian Finance Minister Hany Qadry said the government is working on amending the payment method of the bourse tax, dampening market expectations of any big changes to the unpopular levy.

*This news story has been translated and edited by Amwal Al Ghad English.