Egypt's House of Representatives granted final approval on Tuesday to amendments in the Value Added Tax law. The changes reduce the tax on medical devices to 5 percent and introduce a schedule tax on natural gas.
The legislation was passed during a plenary session chaired by Speaker Hesham Badawy. It includes three primary articles and aims to enhance transparency, tax justice, and trust between the tax administration and businesses.
Key provisions apply a 5 percent VAT rate to medical devices instead of the standard 14 percent. The law exempts inputs for kidney dialysis machines and filters from VAT entirely. It also extends the maximum suspension period for VAT on machinery and equipment to four years.
Natural gas will now face a schedule tax of EGP 20 per thousand cubic feet after removal from the VAT-exempt list. Other measures unify tax treatment for financial services and allow deductions on sales of locally produced machinery and medical devices.