Egyptian legislators approve Bourse tax, Turkey loan

Egypt’s Shura Council approve new taxes, tax hikes and a $1 billion loan

Ahram Online

Egypt’s Shura council, currently tasked with legislation, approved on Saturday tax increases and stamp duties, and a loan from Turkey.

The council passed a stamp duty levy on stock market transactions, amounting to 0.002 percent, to be imposed on buyers and sellers equally. Other initially proposed taxes on capital gains and dividends was not passed.

“The new tax will not affect market activity, but it will help curb speculative trading and encourage medium and long term investment,” Abdallah Shehata, adviser to the minister of finance told state owned Al-Ahram daily.

The council also approved an increase in stamp duties levied on advertisements from 15 to 20 percent.

Turkish support

The Shura Council has approved a loan deal between Egypt and the Export Credit Bank of Turkey whereby Turkey provides $1 billion for Egyptian investors importing Turkish capital goods and machinery.

Egypt is currently seeking international support to curb its balance of payments deficit. Last week, Egypt announced it will receive a $2 billion loan from the Libyan government and will also get $3 billion from Qatar in the form of US dollars denoted treasury bonds.

via Egyptian legislators approve Bourse tax, Turkey loan – Economy – Business – Ahram Online.