Egypt takes several decisions to revive the stock market

The Egyptian government announced yesterday, Wednesday, that it has taken several decisions and stimulus measures in order to revive the stock market and improve the investment and business environment in the country.

Among the decisions taken by the Egyptian government regarding trading expenses, and the abolition of stamp tax on transactions in the money market.

These measures came during the government's meeting yesterday with ministers of the economic portfolio, parties to the capital market in Egypt, and members of the House of Representatives.

The Prime Minister directed a reduction in the trading expenses of the Stock Exchange, the Financial Supervisory Authority, Misr Clearing House, and the Investor Protection Fund from Non-Commercial Risks.

The government agreed with the money market parties on several points, the most important of which was the abolition of the stamp tax on stock market transactions for the resident investor to ensure the fairness of not paying tax in the event of a loss.< /p>

The decisions also included deducting all expenses related to trading and keeping shares and other items from the tax base, and calculating an incentive for the money invested in the stock market and deducting it from the tax base in the event of profits being made to maximize the return. Investors and achieving justice between the different savings vessels, in addition to calculating the profit by comparing the acquisition price or the closing price of shares before the start of the application, whichever is higher compared to the selling price to increase the returns of investors.

The decisions also included reducing the tax on profit realized on new offerings by 50% for the first two years.

According to the Cabinet, no tax files will be opened for individuals investing in the stock exchange, and the clearinghouse will calculate and collect the tax after deducting all expenses. The decisions included the establishment of a special unit in the General Investment Authority To provide a fast track for stock exchange companies.