Also on the SME front, the proposed SMEs Act could grant tax exemptions to funds investing in vocational training ventures, Vice Minister of Finance Mohamed Maait reportedly said. The funds would have to be established specifically to meet that goal, he added. The SMEs Act, which is currently being drafted by the Finance Ministry, is designed to bring small businesses into the formal economy, primarily through tax breaks and by making it easier to file tax returns. Ministry sources told us earlier this week that the proposals for the law include setting a nominal 1% tax on revenues of small businesses earning more than EGP 1 mn a year.

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