The Egyptian Tax Authority (ETA) announced limited amendments to the Value Added Tax (VAT), introducing a 10% tax on crude oil. Meanwhile, this tax will not affect the price of local petroleum products, according to an ETA statement. This, noted the statement, is because the Egyptian General Petroleum Corporation (EGPC), the sole purchaser of crude oil in Egypt, has already included the new 10% tax among its expenditures for the new fiscal year starting July 1st.

The cost of the tax is to be offset by expected additional savings, mitigating any direct impact on end-user prices.

These VAT adjustments aim to broaden Egypt’s tax base and rectify existing distortions, ultimately enhancing the government’s capacity to fund increased spending on human development. The ETA noted that these changes were also introduced in response to requests from representatives of various productive sectors, further supporting the goal of a wider tax base.