The Egyptian government is planning to withdraw the capital gains tax on stock market transactions, a government official has said.

The decision is expected within three weeks, Asharq Business, an Arabic financial portal, reported, citing Minister of Investment and Foreign Trade Hassan El-Khatib.

The capital gains tax has been cancelled or postponed five times due to challenges in implementation and investor withdrawal following its announcement, the report said.

However, Ahram Online, an English news portal, reported in May that the government decided to apply the capital gains tax on shares and stakes listed in the Egyptian Stock Exchange starting from the tax season of March/April 2025.

Capital gains tax is levied on the profits realised from sale or disposal of assets, including securities traded in the stock exchange market.

The Egyptian Stock Exchange began collecting stamp tax in 2013, raising EGP 350 million ($7.23 million) in its first year when daily trading value did not exceed EGP 500 million.

When the tax was re-implemented in 2017, 2018 and 2019, the collection soared to EGP 354 million, EGP 583 million and EGP 729 million, respectively, Asharq Business said.

Editing by Brinda Darasha; brinda.darasha@lseg.com