Agricultural Tax will be Updated in Egypt
January 20, 2014 Taxation in Egypt
CAIRO – Farmers in Egypt may soon be paying more tax, as the government reevaluates all agricultural land in the country for tax purposes.
In a statement issued on January 18th the Ministry of Finance of Egypt confirmed that the rate of agricultural tax in the country will not be hiked in the near future, and that small-scale farmers will continue to receive exemptions from paying the tax, but, at the same time, the Ministry informed that all agricultural land will be revalued for the purpose of tax assessments.
All agricultural land in Egypt is currently taxed at 14 percent of its government valuation, however, the records are heavily outdated, as the values were calculated more than two decades ago, and steps will now be taken to ascertain the real modern cost of productive land.
However, experts have already indicated that if the re-evaluations are carried out, the book value of the lands will likely increase significantly, and, as a result, the tax obligations of the agricultural sector will increase proportionately.
In its statement the Ministry confirmed that, despite any changes, the current system of exemptions on the agricultural tax will be maintained, and no tax will be charged by farmers working on less than three acres of land.
Photo by: U.S. Fish and Wildlife Service Northeast Region