Sellers are now required to settle their value-added tax (VAT) dues in FX if the service or product they offer is invoiced or paid for in foreign currency, according to a regulatory amendment (pdf) to the Unified Tax Law introduced by the Finance Ministry on Wednesday.

There’s a bit of flexibility: Businesses can settle their foreign-currency VAT dues in local currency if they present evidence that they’ve exchanged FX worth the same amount or more than the value of the VAT within a month of the sale being booked.

What’s next: The amendment will go into effect a day after being published in the Official Gazette.

BACKGROUND- The move is the latest in a string of government measures designed to drum up hard currency in response to the ongoing FX crunch. The shortage of hard currency has triggered the reemergence of a black market, where the EGP has sunk to record lows against the USD in recent days. The currency is currently trading hands at more than 50.0 / USD in the parallel market, almost 40% lower than the official rate.

ALSO- Real-estate-for-fx scheme to extend to the private sector: The government is working on an initiative that could allow Egyptian expats and foreigners to purchase properties from private-sector real estate developers in FX, according to a cabinet statement on Thursday.

Remember: The cabinet approved a decision in July to remove the cap on the number of properties foreigners can own provided that they pay for these properties in hard currency.

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