Maait Addresses Parliament on Introducing Electronic Bill by July 1st

Dr. Muhammad Maait, Minister of Finance, said that his ministry has started developing of tax administration in Egypt, pointing out that the Departments of Sales Tax and General Tax will be merged into one structure.

Maait assured that tax procedures will be simplified and shortened in the new unified Tax Procedures bill that the government submitted to the House of Representatives (Parliament), revealing that the bill will be discussed soon.

Maait appeared in front of the plenary session of the HoR held today, headed by Dr. Ali Abdel-Al, speaker on the HoR to discuss a draft law amending some provisions of Law No. 91 of 2005 of Income Tax Law.

The minister pointed out that tax departments are currently being mechanized, stressing that the general concept of this trend will be ready next year. The new automated system aims at simplifying procedures through an electronic system.

The minister noted that the Ministry of Finance is about finalizing the amendment of the income and value added tax law, announcing that the electronic bill will be applied by the first July.

The House of Representatives ( HoR) holds plenary sessions on the next Sunday and Monday. The lawmakers will show their final opinion on bills, including a draft law to amend Law No. 137 of 1958 regarding health precautions to prevent infectious diseases in Egypt.

This draft law aims to develop the ability of health authorities to confront the risk of widespread of some diseases that represent a serious threat to public health.

The repercussions of the outbreak of the Novel Corona epidemic revealed the need to amend that law, which was issued before 62 years, to achieve some goals. The goals include adding more harsh penalties to the standing articles, authorizing health authorities to compel inpiduals to use medical masks and other protective supplies outside the place of residence and enabling health authorities to take the necessary measures to deal with bodies of the dead due to epidemics.

The lawmaker will discuss the bills that include extending the period of suspending of three articles of Law No. 113 of 1939 of farmland. The draft law aims to reduce the tax burden on those working in the agricultural field to encourage them to increase agricultural production.

The HoR will also discuss another draft law to mend some articles of Law No. 11 of 1980 of Stamp Tax and Law No. 91 Income Tax issued in 2005.

Due to the imminent end of the period of suspension of the tax on capital gains resulting from dealing in securities listed on the stock exchange, and as a result of studies conducted by the Ministry of Finance, a draft law was prepared on the basis that the non-resident seller pays a stamp tax of 1.25 per thousand and the non-resident buyer pays 1.25 per thousand from the total sale price.

The resident taxpayer also bears stamp tax of 0.5 per thousand, and the resident buyer incurs 0.5 per thousand, out of the total sale value.

The plenary session discusses a draft law amending some provisions of the Law No. 91 of 2005 of Income Tax (3 articles).

The draft law aims to determine the appropriate tax treatment of capital gains resulting from the transfer of ownership of the lands of public business sector companies and other companies in which the state owns not less than 51% of its capital, when those lands transferred to banks as part of the settlement of debts of these companies.

Sessions of the next week also discuss a draft law amending 29 articles of the Law No. 203 of 1991 of Public Business Sector Companies.