Egypt's amended property tax law to take effect in July

[DJKeefy]

Egypt's amended property tax law to take effect in July: Finance ministry.

Egypt’s amended property tax law will go into effect in July, according to Finance Minister Hany Qadry.

“The law has already been approved by the cabinet and awaits ratification by the president,” the finance ministry's spokesman Mesbah Qotb told Ahram Online.

Under the new law, families owning private properties worth up to LE2 million ($290,000) will be exempted from taxes.

The law's previous draft stipulated that properties with a value above LE500,000 would be taxed. The new amendments state that commercial stores with a annual rent value over LE1,200 will be also be subjected to property taxes, said Qotb.

The new law also exempts military property – clubs, hotels and hospitals.

Exemptions for public buildings were also further specified to include hospitals, schools, shelters, non-profit institutions and political parties.

An article in the old law stipulated that property value would be assessed every five years; however, tax raises were limited to a maximum of 30 percent. This article was paraphrased to clarify a 30 percent limit on property value.

The property tax law, proposed in 2008, had been expected to bring the government some extra LE2-3 billion, but it was never implemented.

The law was expected to go into effect in January 2012. However, in October 2011 it was postponed to 2013 by the then-ruling Supreme Council of the Armed Forces (SCAF).

Former president Mohamed Morsi approved the law in 2013, but he was ousted on the back of a popular uprising before the law could be implemented.

Source: http://english.ahram.org.eg/News/97970.aspx