{"id":625641,"date":"2018-08-12T04:14:26","date_gmt":"2018-08-12T04:14:26","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/08\/12\/real-estate-taxes-gripping-the-nation-these-past-few-weeks\/"},"modified":"2018-08-12T04:14:26","modified_gmt":"2018-08-12T04:14:26","slug":"real-estate-taxes-gripping-the-nation-these-past-few-weeks","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/08\/12\/real-estate-taxes-gripping-the-nation-these-past-few-weeks\/","title":{"rendered":"Real estate taxes gripping the nation these past few weeks"},"content":{"rendered":"

<\/a> Real estate taxes gripping the nation these past few weeks: <\/strong>The Finance Ministry\u2019s attempts to reform and amend the real estate tax has seen it kick up a hornet\u2019s nest in the local press and the airwaves these past few weeks. We attempt to chart these efforts and the reactions.<\/p>\n

The story so far:<\/strong> A government source had revealed to us back in June<\/a> that the Madbouly Cabinet was devising a new real estate tax formula as part of a major real estate tax overhaul that would impact both business and private landholdings. This new formula would set \u201cclear and simplified\u201d guidelines for the tax assessment of industrial properties, hotels, ports and airports, our sources told us. It was then revealed to us that the Finance Ministry had developeda real estate tax formula for the oil and gas industry<\/a>, which already pays the highest corporate taxes in the nation. The ministry passed an amendment to real estate laws last month setting<\/a> a 2.5% levy on the disposition or quick sale value of real estate assets. Furthermore, the ministry is reportedly planning to conduct a major survey and appraisal of the country\u2019s real estate assets this year.<\/p>\n

While the specifics of the new amendments are largely still a mystery, PricewaterhouseCoopers has an excellent brief in Arabic (pdf) <\/strong><\/a>on what was previously said<\/strong> and how it impacts current real estate tax legislation.<\/p>\n

Naturally, the move has caused backlash among the business community and the general landowning public.<\/strong> Business associations, including Union of Investors Associations, are urging the Finance Ministry<\/a> to end real estate taxes on industry land. The Union is now proposing a EGP 5,000 tax for every 1,000 sqm of land owned. Finance Minister Mohamed Maait reportedly promised them to revisit how the ministry taxes industrial land, according to Youm7<\/a>. The backlash among private citizens was evident in the talk shows, prompting the ministry to repeatedly send<\/a> officials to explain the tax on the airwaves. Opinion writers were not impressed<\/a> by the efforts in handling this backlash.<\/p>\n

More recently, the Finance Ministry decided on Thursday to push the deadline for real estate tax payments to 15 October from 15 August<\/strong>, according to an official statement (pdf)<\/a>. The extension comes penalty-free and at the Real Estate Tax Authority\u2019s request due to overcrowding at their offices, which has led to long wait times<\/a>. The ministry said this extension will be its last.<\/strong> The deadline for settling real estate had initially been set for 15 July.<\/p>\n

While we\u2019re on the topic, the central bank will not be freezing clients\u2019 assets as a way of coercing them into paying their real estate taxes. <\/strong>Council of State Vice President and the CBE\u2019s legal adviser Tamer El Daqaq told Ahram Online<\/a> that \u201cbaseless\u201d rumors suggesting as much have been swirling around, citing an unauthorized document. The CBE is taking legal action against those responsible for circulating the document and individuals who \u201cspread the rumor,\u201d according to El Daqaq<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Real estate taxes gripping the nation these past few weeks: The Finance Ministry\u2019s attempts to reform and amend the real estate tax has seen it kick up a hornet\u2019s nest in the local press and the airwaves these past few weeks. We attempt to chart these efforts and the reactions. The story so far: A […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-625641","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"a0cc43d3-f143-4c11-90c3-52343a53476a","order":"0","is_powered_by":true,"section_story_id":"e5de7360-87c7-4892-9598-5ff9b82f0e85","story_type":"1","photo_url":"","photo_position":"above","related_issue":[625634],"teaser":"","voice_url":""},"yoast_head":"\nReal estate taxes gripping the nation these past few weeks - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2018\/08\/12\/real-estate-taxes-gripping-the-nation-these-past-few-weeks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Real estate taxes gripping the nation these past few weeks\" \/>\n<meta property=\"og:description\" content=\"Real estate taxes gripping the nation these past few weeks: The Finance Ministry\u2019s attempts to reform and amend the real estate tax has seen it kick up a hornet\u2019s nest in the local press and the airwaves these past few weeks. 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Samir Aref, head of the Tenth\u2026","rel":"","context":"In "Speed Round"","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/1\/718.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":560394,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/02\/25\/property-disposal-tax-isnt-new-maait\/","url_meta":{"origin":625641,"position":2},"title":"Property disposal tax isn\u2019t new -Maait","author":"enterpriseam admin","date":"25 February 2021","format":false,"excerpt":"That property disposal tax everyone is up in arms about? It\u2019s been around for some 70 years, Finance Minister Mohamed Maait said yesterday to dispel rumors that the government is imposing a new tax on real estate sales. 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