Maait: Amendments on Stamp Duty, Entertainment Tax Not to Affect Low Income Citizens

Mohamed Maait, Minister of Finance spoke in front of the parliament to amend some provisions of the stamp duty, and another entertainment duty, which include amusement parks, and theaters imposing a fee for developing the state’s financial resources, stressing that this law does not affect citizens with low incomes.

Maait, in his clarification speech to critics of the draft law, said: “The state wants to expand revenues in order to expand social housing, increase salaries and pensions,” adding: “When we prepared the general budget, we asked each ministry about their needs, and we found requests amounting to EGP 3 or 4 trillion, while the state's revenues reach only EGP 1.25 Trillion, so how can we guarantee an increase in salaries and pensions, without putting any burden on the citizen with limited income or borrowing?”

The minister stressed that the government resorts to such laws in order to continue development, adding: “There were requests, about a month ago, from farmers to supply wheat, and we provided EGP 100 per ton, bringing the cost to EGP 5 billion on the cost of subsidizing the commodity, whose support reaches 90 billion."

He continued, "In order for the government to spend, there must be revenues," noting that these new duties does not affect the citizen. "After consultations with the relevant authorities, including the insurance Federation and the Ministry of Tourism, we came to find out that the draft law is in the interest of the citizen as it limits the import of non-essential goods."

Maait explained that the increases will be imposed on carbonated soft drinks and imported cigarettes, which damages health. "We have imposed 5%, estimated at 25 piastres on these commodities, and we are trying to create resources for the state to create job opportunities and complete development."

Draft Law on Entertainment, Stamp Duty

The proposed stamp duty imposed on premiums and for insurance was increased by an additional 1%, and 5% on carbonated soft drinks and imported cigarettes.

Increasing the fee for leaving the country to EGP 100, while the fee remains EGP 50 for foreigners coming for the purpose of tourism only to the governorates (Red Sea, South Sinai, Luxor, Aswan, Matrouh) to encourage tourism.

Increasing the development fee to 3% of the value of each commodity purchased from duty-free markets with a minimum of $1.5, including one liter of spirits, instead of 2%, with collecting a resource development fee of at least 10% (12 dollars) on each additional liter of Spirits.

Members of the foreign diplomatic and consular corps, who are registered in the rolls issued by the Ministry of Foreign Affairs are exempted from this fee.

The project obliged the duty-free companies to collect this fee and submit it to the Egyptian Tax Authority (ETA).