By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    Egypt to issue new bonds for climate, social goals
    Egypt to issue new bonds for climate, social goals
    September 27, 2023
    Saudi Public Investment Fund eyes stake in Palm Hills Development
    Saudi Public Investment Fund eyes stake in Palm Hills Development
    September 27, 2023
    UNDP, MBRF launch online learning initiative for Arab countries
    UNDP, MBRF launch online learning initiative for Arab countries
    September 27, 2023
    Egypt Post invests in Roaderz platform to enhance e-commerce, delivery services
    Egypt Post invests in Roaderz platform to enhance e-commerce, delivery services
    September 27, 2023
    GAFI to grant 45 more golden licences to boost investment
    GAFI to grant 45 more golden licences to boost investment
    September 27, 2023
  • Politics
    PoliticsShow More
    Egypt’s Irrigation Minister highlights climate challenges for water sector
    Egypt’s Irrigation Minister highlights climate challenges for water sector
    September 27, 2023
    CCCPA, Senghor University join forces for African peace, development
    CCCPA, Senghor University join forces for African peace, development
    September 27, 2023
    Arab League chief urges more funding, investment for food security
    Arab League chief urges more funding, investment for food security
    September 27, 2023
    Egypt denounces Houthi attack on Bahraini forces in Saudi Arabia
    Egypt denounces Houthi attack on Bahraini forces in Saudi Arabia
    September 27, 2023
    vPalestine urges international action to end Israeli occupation, crimes
    Palestine urges international action to end Israeli occupation, crimes
    September 26, 2023
  • Interviews
    InterviewsShow More
    Microsoft Egypt aims to provide advanced AI models, build solid AI ecosystem: Mirna Arif
    Microsoft Egypt aims to provide advanced AI models, build solid AI ecosystem: Mirna Arif
    September 18, 2023
    I love privacy, and I am not concerned about competition: Yasmine Sabry
    I love privacy, and I am not concerned about competition: Yasmine Sabry
    September 14, 2023
    Sustainability, digital transformation at the heart of our strategy: Heidelberg Materials Egypt
    Sustainability, digital transformation at the heart of our strategy: Heidelberg Materials Egypt
    September 12, 2023
    India welcomes Egypt's BRICS membership: Boosting trade, investment, and access to strategic commodities
    India welcomes Egypt’s BRICS membership: Boosting trade, investment, and access to strategic commodities
    September 11, 2023
    The box office is not a measure of success: Basma Hassan
    The box office is not a measure of success: Basma
    September 6, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: Delays in real estate tax estimation leads to budget deficit increase: Farag
Share
Notification
Latest News
Genetically engineering associations between plants and nitrogen-fixing microbes could lessen dependence on synthetic fertilizer
Genetically engineering associations between plants and nitrogen-fixing microbes could lessen dependence on synthetic fertilizer
Science
Earthworms contribute to 6.5% of global grain production, says new research
Earthworms contribute to 6.5% of global grain production, says new research
Science
Researchers build and test a framework for achieving climate resilience across diverse fisheries
Researchers build and test a framework for achieving climate resilience across diverse fisheries
Science
Egypt to issue new bonds for climate, social goals
Egypt to issue new bonds for climate, social goals
Business
Saudi Public Investment Fund eyes stake in Palm Hills Development
Saudi Public Investment Fund eyes stake in Palm Hills Development
Business
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Delays in real estate tax estimation leads to budget deficit increase: Farag
Business

Delays in real estate tax estimation leads to budget deficit increase: Farag

Shaimaa Al-Aees
Last updated: 2015/11/07 at 2:18 AM
By Shaimaa Al-Aees 5 Min Read
Share
SHARE
The delay in estimating the real estate tax value of special enterprises would increase the budget deficit, according to the Minister of Finance’s real estate tax advisor Tarek Farag. (AFP File Photo)
The delay in estimating the real estate tax value of special enterprises would increase the budget deficit, according to the Minister of Finance’s real estate tax advisor Tarek Farag.
(AFP File Photo)

The delay in estimating the real estate tax value of special enterprises would increase the budget deficit, according to the Minister of Finance’s real estate tax advisor Tarek Farag.

Speaking to Daily News Egypt, Farag added that the budget deficit for the fiscal year (FY) 2014/2015 is worth approximately EGP 240bn. Farag’s comments came on the sidelines of a seminar on “Problems of real estate tax application and its impact on the investment”, which took place on Wednesday.

Farag attributed the delay in the real estate taxes payment on special enterprises, including hotels, schools, hospitals, airports and ports, to the evaluation of the rental value of those units and the delay in forming appeal committees.

He added that, contrary to some rumours, there will be no fines imposed on taxpayers whose cases have yet to be decided, even after delays.

Farag admitted there are no experts in Egypt who can evaluate these special enterprises included in the new real estate law. There is also a lack of accurate databases calculating the number of targeted residential units from the tax, especially as there are a large number of slums.

“The most prominent problems of Law 196/2008 is valuing and calculating the amount of tax, but we seek to evaluate these enterprises according to level of construction, geographical location and services provided,” said Farag.

In response to allegations that the tax will lead to a decrease in investment and load on the investors and taxpayers, Farag said the evaluation for real estate tax will be every five years. This will come in addition to an annual evaluation of the residential units in terms of low or high prices.

Farag revealed that the Real Estate Tax Authority (RTA) has begun sending out notifications from the beginning of July 2013 for taxpayers.

He added that the old law exempted owners of residential units less than EGP 500,000, but according to the new law residential units with a value of less than EGP 2m will be exempted.

Farag added that the buildings constructed before 1996 are exempt from real estate tax, instead being subjected to the old act “Returns Act 56/1954”.

Anwar Farg, from the RTA’s Technical Office, said that the estimated amount of the tax in the budget for FY 2014/2015 is approximately EGP 3.5bn.

Farg revealed that this estimated amount includes residential, administrative and business units and does not include special enterprises, adding that the authority gathered so far only EGP 600m.

The head of the technical office of the head of RTA Nagi Sergani said the number of appeals does not exceed the rate of 1% of the total notifications sent to the taxpayers.

Sergani added that the RTA has yet to finish outlining the standards for evaluating the tourist facilities.

The chairman of directors of Egyptian chamber of hotels Nagi El-Erian said the real estate tax is an unjust law, especially in light of the current tourism situation in Egypt.

El-Erian denounced the tax on the value of buildings hotels calculated in addition to the value of the hotel land.

Citing an example, El-Erian said a renowned hotel was paying EGP 700,000 returns according to the old law, but under the new law, the estimated tax is EGP 7.6m due to the value of the hotels’ land.

“This tax represents a significant burden on hotels taxpayers by calculating the price of land and buildings together, which makes hoteliers increase accommodation prices that makes the tourism situation worse,” added El-Erian.

El-Erian claimed that according to a study conducted by the World Tourism Organization on countries that impose taxes on hotels, France is one of the few countries that imposes a 1% tax on hotels.

You Might Also Like

Egypt to issue new bonds for climate, social goals

Saudi Public Investment Fund eyes stake in Palm Hills Development

UNDP, MBRF launch online learning initiative for Arab countries

Egypt Post invests in Roaderz platform to enhance e-commerce, delivery services

GAFI to grant 45 more golden licences to boost investment

TAGGED: Daily News Egypt, DNE, Hotels, real estate tax, RTA
Share this Article
Facebook Twitter Email Print
Previous Article Salah Soltan requests punishment in place of dying son
Next Article Egyptian AIDS Society slams TV show over ‘homosexual orgies’ episode
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ad image
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

Genetically engineering associations between plants and nitrogen-fixing microbes could lessen dependence on synthetic fertilizer
Genetically engineering associations between plants and nitrogen-fixing microbes could lessen dependence on synthetic fertilizer
Science
Earthworms contribute to 6.5% of global grain production, says new research
Earthworms contribute to 6.5% of global grain production, says new research
Science
Researchers build and test a framework for achieving climate resilience across diverse fisheries
Researchers build and test a framework for achieving climate resilience across diverse fisheries
Science
Egypt to issue new bonds for climate, social goals
Egypt to issue new bonds for climate, social goals
Business
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?