{"id":682466,"date":"2026-01-21T00:00:00","date_gmt":"2026-01-21T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/?p=682466"},"modified":"2026-01-21T13:34:29","modified_gmt":"2026-01-21T13:34:29","slug":"finmin-eyes-vat-reform-to-broaden-tax-base","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2026\/01\/21\/finmin-eyes-vat-reform-to-broaden-tax-base\/","title":{"rendered":"FinMin eyes VAT reform to broaden tax base"},"content":{"rendered":"

Good afternoon, friends.<\/strong> The news cycle shows no signs of winding down ahead of the weekend. A VAT revamp is in the works in our neck of the woods, US markets are tanking as Trump\u2019s Greenland grab rattles investors, and we meet the duo building AI-powered ticketing out of Egypt.<\/p>\n

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THE BIG STORY TODAY-<\/p>\n

? The Finance Ministry is reviewing a proposed overhaul of <\/strong>VAT to scrap exemptions on select goods and services that won\u2019t have a negative inflationary impact<\/strong>, a senior government official told EnterpriseAM. The move would shift some goods and services at lower, non deductible rates into the standard 14% rate. While the headline rate will rise for these sectors \u2014 which include, professional services, and sugar for industrial uses \u2014 the change allows businesses to deduct the VAT paid on their inputs.<\/p>\n

Why it matters: <\/strong>This fiscal recalibration is intended to bolster state coffers. VAT \u2014 which stands as the largest individual source of revenue for the state \u2014 generated EGP 428 bn of the EGP 961.6 bn in tax revenue during the first five months of the current fiscal year.<\/p>\n

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THE BIG STORY ABROAD-<\/p>\n

? \u201cSelling America\u201d is back en vogue as US President Donald Trump renews <\/strong>tariff threats against Europe amid his push for Greenland.<\/strong> The US stock markets took a beating on Tuesday, with the Dow Jones dropping by close to 1.8%, the S&P 500 falling over 2%, and the Nasdaq closing 2.4% lower \u2014 the worst daily performance for all three since October of last year. The USD index also slid nearly 1% against a basket of six currencies, while the EUR jumped 0.6%.<\/p>\n

Investors are dumping US stocks, bonds, and USD to seek safety in gold, with prices <\/strong>surging above USD 4.8k per ounce on Wednesday, setting a fresh record.<\/strong> Analysts expect prices to reach USD 5k, while a commodities strategist at ICBC Standard Bank sees the metal pushing as high as USD 7.1k.<\/p>\n

The Greenland standoff is also rattling bond markets. <\/strong>Danish pension fund AkademikerPension announced Tuesday that it would sell around USD 100 mn in US Treasurys, with investing chief Anders Schelde citing \u201cpoor US government finances.\u201d US Treasury Secretary Scott Bessent shrugged off the move at Davos, telling<\/a> reporters, \u201cIt\u2019s less than USD 100 mn [...] Denmark\u2019s investment in US Treasury bonds, like Denmark itself, is irrelevant.\u201d<\/p>\n

^^Read more on: BBC<\/a> and CNBC here<\/a> and here<\/a>.<\/p>\n

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