EGX investors demand stamp duty not exceed 0.1%

Cairo - Mubasher: Capital market associations working in the Egyptian Exchange (EGX) aim at proposing a note to the finance and investment ministers, recommending that the stamp duty tax rate on the capital market should not exceed 0.1%.

The Egyptian Capital Market Association (ECMA), the Federation of the Egyptian Chambers of Commerce’s (FEDCOC) financial stocks department, and the EG-Finance Association are demanding the amendment of the capital tax law, to be refered to the House of Representatives for approval before 16 May.

The objective of the note, which is set to be presented tomorrow, is to give the market an opportunity to cope with the new developments, such as the awaited expected governmental initial public offerings (IPOs).

The note indicated that the 0.1% is the maximum rate the market can currently handle, and that it could help the market recover, as an increase in the tax ratio will result in a shrinkage in liquidity volumes. It also warned that if fiscal policies are not cautious about the investment sectors, they may cause an economic recession.

MUBASHER Contribution Time: 21-Feb-2017 13:53 (GMT)
MUBASHER Last Update Time: 26-Feb-2017 10:02 (GMT)