Tuesday 7 June 2011

Egypt drops dividend tax plan - The National

Egypt's finance ministry has scrapped plans to impose a capital gains tax on dividend payments after receiving a torrent of criticism from the business community.

The plan's many detractors, including the chairman of the Egyptian Exchange and Naguib Sawiris, an Egyptian billionaire businessman, argued the move would be detrimental to the country's economic recovery, particularly in the capital markets.

"We sat with them [the finance ministry] and showed them the numbers, and asked for the exemption," said Mohammed Abdel Salam, the chairman of the Egyptian Exchange. He said he showed the ministry officials that the taxes would have generated less than 2 billion Egyptian pounds (Dh1.23bn) in extra revenues while hurting companies' ability to attract investors.

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