Egypt to yield $168m from property tax on factories

Egypt’s Ministry of Finance says it will review the value of the property tax on factories after a study by the Industrial Development Authority raised the price of industrial land to 1,200-1,700 Egyptian pounds ($168-$23)8 per metre, a source at the ministry told the Anadolu news agency.

Following the price rise, the net revenues of tax will reach 1.2 billion Egyptian pounds ($168 million).

The property tax law was approved by Egyptian President Abdel Fatah Al-Sisi last week. Commercial and industrial properties whose net rental value is less than 1,200 Egyptian pounds are exempt from the tax.

The ministry’s previous estimates were based on the assumption that the price of industrial buildings per square metre was only 600 Egyptian pounds ($84), the source said.

Under the new estimate, the net proceeds of the tax from factories will increase from 800 million ($112 million) to 1.2 billion Egyptian pounds, he added.

According to the law, the property tax is equal to 10 per cent of the rental value of the unit, residential or non-residential, and three per cent of the capital value of the unit.