Egypt tax laws to change

Taxation laws in Egypt are set to change, with low income housing receiving the lion's share of the benefits.

Egypt's recent changes to real estate tax law will benefit many people, but appears to specifically benefit those living in poor neighbourhoods and slums. The new tax laws make housing that can be classified under these specific conditions, exempt from property taxes. Youssef Boutros-Ghali, Minister of Finance and Insurance, made the announcement after a meeting of the Shura Council earlier this year.

The reason for the decision was said to be the prevailing problems of electricity and water supply within shantytowns. In contrast to other prevailing opinions, the new real estate tax laws will take into account less of the property's market value and more of the societal value when classifications are determined.

Although there has been some speculation regarding the possibility of double taxation, Boutros-Ghali stated that this will be avoided since taxes will be determined only after property valuation has been carried out. Taxes will be calculated based on a property's location, and the correlating infrastructure that will be built such as roads and other facilities. Any exemptions that were present under the old tax laws would remain untouched.

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