Value Added Tax Law Supports Transit Trade and Stimulates Egypt’s Transformation into a Regional Logistics Hub
Rasha Abdel Aal, Head of the Egyptian Tax Authority:
– Proposed amendments to the Value Added Tax Law support transit trade and stimulate Egypt’s transformation into a regional logistics hub
– Non-applicability of tax on services rendered on transit goods
– New facilitations enhance the competitiveness of Egyptian ports and the movement of trade and services
Rasha Abdel Aal, Head of the Egyptian Tax Authority, affirmed that the draft amendments to the Value Added Tax Law (VAT Law), currently under discussion in the House of Representatives (Majlis Al-Nuwaab), include tax treatments aimed at supporting transit trade and bolstering the state’s efforts to transform Egypt into a regional logistics and commercial hub.
The Head of the Egyptian Tax Authority clarified that the draft law stipulates the non-applicability of Value Added Tax (VAT) on services rendered on transit goods, in line with the treatment currently applied to transit goods themselves. This contributes to supporting the movement of trade and services associated with Egyptian ports.
She added that these amendments will enhance the competitiveness of Egyptian ports and encourage the movement of transit goods and logistics services, leveraging Egypt’s distinguished geographical location and its strategic infrastructure, ports, and transportation corridors.
Rasha Abdel Aal emphasized that this tax treatment is part of the Ministry of Finance’s direction, led by Ahmed Kojok, Minister of Finance, towards simplifying procedures and stimulating economic and service activities that support investment and international trade. She explained that these proposed amendments aim to enhance the competitiveness of the Egyptian economy and support logistics and commercial activities, which will positively reflect on attracting investments and increasing trade movement through Egyptian ports.
