Cairo – Mubasher: The head of the International Monetary Fund (IMF), Christine Lagarde, said Sunday that the application of the value-added tax (VAT) in Egypt will lead to an increase of 1.5% in the gross domestic product (GDP).
During her speech at the second Forum of Public Finances in the Arab Countries, hosted in Dubai, Lagarde said the IMF has helped the Egyptian Public Taxes Authority in preparation for applying the VAT.
“Countries in the Gulf, for example, are working to introduce a harmonized VAT in 2018. These efforts, which the IMF has supported through is technical assistance, could raise anywhere from 1 to 2% of GDP, assuming a VAT rate of 5%,” Lagarde added.
