Lawmakers will amend controversial changes to the Egyptian stock market in a draft law that speculators feared would scare foreign investors from Egypt, according to president of the Egyptian stock market, Mohamed Omran, in a press conference on Monday.
Stock market and economic players had been divided over a 10 percent tax the government intends to impose on stock market capital gains. Many say the new law would cause foreign investors to pack up and invest elsewhere.
The new amendments, Omran said, stipulate that bonus shares become tax free without a need to specify a period to maintain them. Another possible amendment is to impose the tax on cash dividends of a minimum LE15,000.
Federation of Egypt Chambers of Commerce Chief Ahmed al-Wakeel said the federation submitted a memo to Interim President Adly Mansour demanding that passing the law be postponed.
The memo hinted that investors realize burdens that everyone will be loaded with until economy recovers, Wakeel told Al-Masry Al-Youm.
Wakeel also said the memo requested that such measures be within a comprehensive economic reform package. The memo called on the president not to take rash decisions that could have negative impact on the investment atmosphere.
In other news, the federation’s public division of capital market and brokering companies will convene on Monday to discuss the crisis over the law as well as its impact on companies, investments and shareholders.
Prime Minister Ibrahim Mehleb told Al-Masry Al-Youm on Sunday that the tax on stock market capital gains will not be halted, saying that the government imposed it after study and that finance minister held discussion over it with stock market players, chief and head of Capital Market Authority. He added that giving wrong information contributed to the state of confusion.
Edited translation from MENA and Al-Masry Al-Youm
