Egypt to lower fees on security trades to support market


CAIRO, Nov 10 (Reuters) – Egypt plans to reduce a series of fees on trading in Egyptian securities as a means of improving the country’s investment environment, the cabinet said in a statement on Wednesday.

The reductions include fees on trades on the stock market, payments to the Financial Regulatory Authority, fees to the state-run Misr for Central Clearing, Depository and Registry and fees to the Investor Protection Fund, the statement said.

Security associations have been lobbying the government for months to get the fees reduced, arguing that they dampen trade to the extent that they actually lower government revenue, said a broker in securities firm who asked not to be named.

“This has been a comprehensive effort of all the security associations,” said the broker, who asked not to be named because was not authorised to speak to the press. “They have been studying the bottlenecks and obstacles to trade.”

This is particularly true with sales of bonds and treasury bills, he added.

The plan includes cutting taxes on realised profit from new offerings by 50% for two years, abolishing a stamp duty on securities exchange trades for resident investors and lowering taxes for retail investors participating in stock funds to 5%, the cabinet said after meetings chaired by the prime minister.

Reporting by Moamen Said Atallah and Patrick Werr
Writing by Ahmad Elhamy
Editing by Chris Reese and Alistair Bell

Our Standards: The Thomson Reuters Trust Principles.

ADVERTISEMENT



Source link : https://www.reuters.com/world/middle-east/egypt-lower-fees-security-trades-support-market-2021-11-10/

Author :

Publish date : 2021-11-10 21:42:00

Tags:
share on: