CAIRO: Egypt will exempt bonus shares from a new 10 percent capital gains tax on profits made on the stock market, the country’s Finance Minister Hany Dimian said.
Dimian said Thursday that Egypt had approved the introduction of the tax, part of the first phase of income tax reforms that the government expects to bring in 10 billion Egyptian pounds ($1.4 billion).
“Distributions of bonus shares will be exempt from the taxes,” Dimian told Reuters late Thursday after a meeting with government finance officials.
Stock market profits are currently tax-free, and Dimian has said the new tax will not be retroactive.
Egypt is eager to encourage investment but is also trying to find additional revenue sources after years of economic and political turmoil since a popular uprising toppled President Hosni Mubarak in 2011.
Abdel-Fattah al-Sisi, the former army chief who toppled Egypt’s first freely elected leader after protests last year, was elected president with over 90 percent of the vote this week, according to initial results.
A version of this article appeared in the print edition of The Daily Star on May 31, 2014, on page 4.