The new stamp tax on the Egyptian Exchange’s daily selling and buying transactions have been widely denounced.
EG-Finance Association has attacked the Egyptian government for imposing a stamp tax on the EGX daily selling and buying transactions at 1/1000. EG-Finance said the timing of imposing such a tax is totally unsuitable for the current period amid the lack of liquidity and growing selling pressures in the market.
Mohsen Adel, Vice Chairman of EG-Finance, said such a tax is totally unsuitable for the current period and will likely discourage investors who will shy away from trading.
Adel added that the EGX is currently suffering from investors’ reduced appetite as well as the lack of liquidity driven by the political turbulence.
Furthermore, Adel referred that the economic return from imposing such tax will be remarkably humble as it will not exceed EGP 200 million yearly. The government ought to create powerful incentives to invest in the EGX instead of adopting decisions that will drive the investors to abandon the market.
The Egyptian government has announced on Monday that the amended economic reform program will include imposing a stamp tax on daily transactions on the EGX at 1/100.
