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CAIRO, March 20 Egypt's new stamp duty on stock
exchange transactions will come into effect in May and include
for the first time a 0.3 percent levy for investors acquiring
more than a third of a company's stocks, deputy finance minister
Amr al-Munayer said.
Egypt's finance minister said last month the government
planned to introduce a stamp duty of 0.125 percent on buyers and
sellers of stocks, rising to 0.150 percent in the second year
and 0.175 percent in the third.
But Munayer told Reuters on Monday the stamp duty would
apply to a wider ranger of instruments and the higher duty would
be imposed on mergers and acquisitions where more than 33
percent of a company was being sold.
"It will be imposed on all listed and unlisted papers
whether they are shares or bonds or over the counter," he said.
The finance ministry is targeting revenues of 1-1.5 billion
Egyptian pounds ($54.8 million-$82.2 million) in the first year
of the new tax, he said in a telephone interview.
Egypt imposed a stamp duty on buyers and sellers in May
2013, collecting more than 350 million Egyptian pounds in
revenues before the levy was replaced in July 2014 by a 10
percent capital gains tax.
The government suspended the capital gains tax in May 2015
for two years, under pressure from investors. They said it was
discouraging business just as Egypt was struggling to recover
from a plunge in confidence after a 2011 uprising and subsequent
The Higher Investment Council last year extended the
suspension of capital gains tax until 2020 as part of efforts to
draw investors back. Instead, Egypt plans to revive the stamp
duty as part of an economic reform programme that helped it win
a $12 billion three-year loan from the IMF.
Egypt won final approval for its IMF programme just days
after the central bank took the historic step of floating the
currency. Together, the moves unleashed a deluge of investment
in the Egyptian stock market, which hit record highs.
The blue-chip index was roughly unchanged on
More than 270 companies are listed on the Egyptian stock
exchange and more than 500,000 investors are registered to trade
($1 = 18.25 Egyptian pounds)
(Additional reporting by Ehab Farouk; Writing by Lin Noueihed;
Editing by Dominic Evans)