A two-step on the VAT?

A two-step on the VAT? It looked for a little while yesterday as if we weren’t having a VAT after multiple news reports that the Finance Ministry is now considering alternatives to implementing the value added tax (VAT). Al Shorouk broke the news, reporting that no date for the implementation of the tax has been set and, even if it is approved by the incoming parliament soon, it will not be able to generate the expected revenues for the current fiscal year. Close to midnight, the ministry put out a statement (below) saying that dropping the VAT is not an option — the enabling legislation will be at the top of the House of Representatives’ agenda when it convenes. The FY2015-16 budget projects EGP 98.5 bn in VAT revenues. Al Shorouk says the government still fears the inflationary impact of implementing the new tax regime.

Download the statement in Arabic (.docx file)