Manpower Committee re-suggests imposing Tax on EGX Transactions

The Manpower Committee of the People’s Assembly (Lower House) has re-called on imposing taxes on stock market, despite the fact that these demands had aroused a state of tensions among the economic arena once it was first announced by Social Solidarity Minister Dr. Gowda Abdel Khalek.

Dr. Gowda had suggested having such a tax, when he was holding the social solidarity portfolio during Essam Sharaf’s cabinet.

“We ought to impose such a tax on the stock market’s daily transactions, just like many other countries around the world do, so as to support Egypt’s economy.” Saber Abu Al-Fadl, the head of the Manpower Committee, said to Amwal Al Ghad.

On the repercussions of imposing stock market tax, Saber explained that any serious investor seeks the long-term investments and does not care about the payoffs and the nation must benefit from the profits he gained. Unlikely, the unserious investors or the investors with Hot Money seek to ensure they get the best short-term profits then to immediately withdraw and move to another market.

On Dr. Gowda Abdel Khalek’s suggestion of imposing the tax, considerable controversy had been provoked as a number of experts had warned officials off applying such a tax on the Egyptian market and off its impact on the amount of the daily transactions. Consequently, the former Finance Minister Dr. Samir Radwan had announced not applying that tax and discussing imposing a tax on the capital profits instead.

In the meanwhile, Mr. Saber has revealed his meeting with Galal Zorba, the Chairman of Federation of Egyptian Industries (FEI), on the businessmen’s role during the coming stage and how to deal with them after the revolution so as to maintain the investment and the investors in Egypt and also to secure Egyptian employees’ rights.